tESTINY    OF 
AMERICAN  CITY 


Digitized  by  the  Internet  Archive 

in  2007  with  funding  from 

Microsoft  Corporation 


http://www.archive.org/details/destinyofamericaOOhessrich 


£&}      S 


The  Destiny  of  the 
American  City 


By 
JOHN  FREDERICK  HESSEL 

Author  of 
Municipal  Problems,  Mother  of  Mine,  Etc. 


Published  by 

Municipal  Problems  Publishing  Co. 

Champaign,  Illinois 


1922 


t+Tisrt 


COPYEIGHT,    1922 
BY 

JOHN  FREDERICK  HESSEL 


United  States  and  Foreign  Countries 
All  Bights  Reserved 


The  Municipal  Problems  Publishing  Co., 
champaign,  illinois,  u.  s.  a. 


PREFACE 

A  portion  of  this  manuscript  was  written  sev- 
eral years  ago,  during  a  period  of  inflamed  pub- 
lic opinion  and  social  unrest,  fraught  with  many 
misgivings  and  uncertainties. 

The  period  in  question,  was  one  most  prolific 
in  various  and  numerous  remedies  offered  for 
the  purpose  of  stimulating  the  building  indus- 
try, each  one  a  guaranteed  specific  for  every 
economic  ill. 

The  object  in  offering  it,  at  this  time,  is  more 
for  the  purpose  of  giving  some  idea  of  the 
psychology  of  a  period,  filled  with  many 
economic  problems,  that  had  to  be  solved  under 
conditions,  new,  varied  and  untried. 

The  position  taken  at  that  time  was  far  from 
being  the  most  popular  one,  for  the  reason  it 
offered  very  little  encouragement  for  the 
builder  to  build,  until  some  of  the  abuses  with 
which  the  building  industry  was  surrounded, 
were  corrected. 

Artificially  stimulating  building  under  exist- 
ing conditions,  it  was  contended,  would  in  the 
end,  entail  another  period  of  stagnation  to  cor- 
rect abuses,  resulting  in  further  delay  in  stabil- 
izing cost  of  material  and  labor,  the  primary 
cause  of  stagnation  in  the  building  industry — a 


4  Preface 

period  for  corrective  measures,  rather  than  one 
for  artificial  stimulation. 

Emerging  as  we  are  into  the  opening  and 
light  of  a  better  day,  freed  from  many  of  the 
fallacies  of  the  past,  with  its  revelry  of  wild 
money-making,  its  lurid  and  lavish  expendi- 
ture, the  artificial  extravagance  and  inflations 
of  the  war,  it  is  hoped  that  the  return  to  the 
fundamental  principles  and  essential  things  of 
life,  the  only  true  basis  of  prosperity,  will  be 
sure  and  lasting. 

J.  F.  Hessel. 


FOREWORD 

I 

"The  index  to  the  wealth,  character  and  growth 

of  a  city  are  its  buildings; 
The    great    structures,    imposing    edifices    and 

artistic  dwellings, 
That  attract  the  eye  of  the  stranger,  as  he  steps 

within  its  portals. 
These  reflect  not  only  upon  the  character  of  the 

city, 
But  the  character  of  its  citizens  as  well. 
They    are   manifestations   of   the   old   pioneer 

spirit 
That  converted  our  wet  black  prairies 
Into  the  best  farms  in  the  world. 

II 

The  pioneer  of  today,  in  building  the  super- 
structure, 

The  modern  American  city,  upon  the  foundation 
laid  by  the  pioneer  of  yesterday, 

Is  merely  the  next  step  forward  in  the  evolution 
of  time. 

We  are  wont  to  believe  the  work  of  the  pioneer 
has  been  completed. 

We  associate  in  our  minds  with  him,  the  hard- 
ships, the  disappointments  and  the  sacrifices 

Of  the  days  gone  by,  and  sometimes  we  fail  to 
realize 


6  •        ••.      Foreword 

That  each  decade,  or  at  least  each  epoch 
Must  have  the  pioneer,  just  as  truly  as  did  in  the 
early  days  of  our  prairies. 

Ill 

The  sturdy  men  and  women  of  that  day  per- 
formed their  work  well. 

They  transformed  the  wet  black  prairies  into 
the  best  farms  in  the  world; 

They  built  our  villages  and  our  towns; 

They  erected  school  houses  and  places  of  wor- 
ship according  to  their  means. 

We,  today,  enjoy  the  fruits  of  their  labors. 

On  their  foundation  we  must  continue  to  build. 

The  work  is  no  longer  that  of  building  a  village 
or  a  town; 

Our  work  is  to  build  a  city. 

IV 

We  visit  cities  older  than  ours  by  a  century, 

And  marvel  at  their  richness  and  their  beauty. 

We  compare  them  with  our  own  and  wish  that 
ours  were  the  same. 

We  forget  to  take  into  consideration  the  ele- 
ment of  time. 

With  the  proper  vision  to  guide  us  on,  and  the 
determination  to  do, 

What  can  not  be  accomplished  as  the  years 
goby? 

Truly,  the  work  of  the  city  pioneer  is  before  us. 
— Municipal  Problems,  1919. 


DEDICATED 

TO 

The  Destiny  of  the  American  City 

I 

Have  cities,  like  individuals,  a  destiny? 

Or  are  they  merely  victims  of  chance,  oppor- 
tunism and  environment? 

Does  the  Hand  of  Destiny  guide  a  city  along  a 
certain  arbitrary  path  of  progress? 

Or  is  it  like  a  shooting  star, 

A  nomad  in  the  sky? 

II 
Napoleon,  at  the  Battle  of  Friedland, 
When  a  cannon  ball  came  over  their  heads, 
Just  over  the  bayonets  of  the  troops, 
Smilingly  made   the   remark   when   a   soldier 

instinctively  dodged: 
"My  friend,  if  this  ball  was  destined  for  you, 

though  you  were  to  burrow  a  hundred  feet 

under  the  ground,  it  would  be  sure  to  find 

you  there." 

Ill 
Is  it  true  as  Napoleon  intimated, 
That   all  incidents   of   life   are   controlled  by 
Destiny, 


8  Dedication 

Surrounded  by  its  immutable  laws  beyond  indi- 
vidual control, 

Leaving  individual  effort  forward  or  back, 
fruitless  for  good  or  for  evil? 

IV 
Or  is  not  every  individual  endowed  with  the 

latent  power 
Of  carving  out  a  positive  rather  than  a  negative 

destiny, 
If  he  should  so  decree? 
The  little  things  of  life,  trivial  and  unimportant 

as  they  appear 
At  the  time,  may,  in  the  end,  prove  to  be 
The  all  important  factors  of  failure  or  success. 


RECONSTRUCTION 

When  the  harbinger  of  peace  first  made  its 
appearance  through  the  dark  clouds  of  war,  the 
whole  world,  spontaneously,  began  prepara- 
tions to  solve  the  new  economic  problems  with 
which  it  would  be  confronted  upon  the  cessa- 
tion of  hostility,  and  the  slogan  everywhere 
was,  "Prepare  for  peace  after  the  war." 

Statesmen  went  here  and  there  throughout 
the  land  proclaiming  the  necessity  of  making 
these  preparations,  so  that  our  economic  loss 
in  the  adjustment  from  a  war  to  a  peace  footing 
would  be  reduced  to  a  minimum. 

In  doing  this,  it  was  necessary  that  the  bigger 
problems,  the  far  reaching  problems,  those 
most  important  and  essential  in  our  progress  as 
a  nation,  should  be  given  immediate  considera- 
tion, and  it  therefore  became  the  duty  of  the 
statesman,  both  in  his  official  and  private 
capacity,  to  initiate  and  advance  this  idea 
throughout  the  land,  at  the  same  time,  he,  who 
volunteered  to  solve  these  problems  and  over- 
looked the  fact  that  reconstruction  should  also 
commence  with  the  unit,  the  municipality,  the 
township  and  the  county,  failed  in  the  fulfill- 
ment of  his  mission,  indicating  that  he  had  not 
only  forgotten  the  adage,  "Look  after  the  pen- 

9 


10  Reconstruction 

nies  and  the  dollars  will  take  care  of  them- 
selves," but  its  application  as  well. 

Leaders  of  progressive  cities,  everywhere, 
have  been  taking  an  inventory  of  their  natural 
advantages  and  serious  handicaps  which  con- 
stitutes their  assets  and  liabilities,  recognizing 
the  fact  that  exploiting  the  former  and  over- 
coming the  latter,  is  an  imperative  duty,  to  be 
assiduously  followed  during  the  reconstruction 
period  in  which  we  are  now  just  entering. 

In  view  of  what  other  cities  are  doing,  we 
naturally  turn  to  our  own.  Our  inventory  has 
been  taken;  we  know  what  we  have  and  what 
we  lack,  and  what  this  inventory  discloses 
should  be  openly  discussed,  dispassionately, 
without  bias  or  prejudice;  not  in  the  light  of 
any  special  advantage  that  might  accrue  to  the 
individual,  but  in  the  light  of  what  is  best  for 
the  city  and  the  wishes  of  the  people. 

— Municipal  Problems,  1919. 


America  changes  so  fast  that  every  few 
years  a  new  crop  of  books  is  needed  to 
describe  the  new  face  which  things  have 
put  on,  the  new  problems  that  have 
appeared,  the  new  ideas  germinating 
among  the  people,  the  new  and  unexpected 
development  for  evil  as  well  as  for  good  of 
which  her  established  institutions  have 
been  found  capable. 

— Bryce. 


CONTENTS 

CHAPTER  PAGE 

I     The  Future  Builders  of  the  Ameri- 
can City 19 

a.  Individualism. 

b.  How  Are  You  Classified? 

II     What  May  Be  Done 31 

a.  Municipality. 

b.  A  Period  for  Corrective  Measures. 

Ill     Public    Improvements 41 

a.  What  is  a  Public  Improvement? 

b.  Maximum    Improvements     at    Mini- 

mum Cost. 


IV     Official    Co-Operation 


51 


V  Deliberate  and  Definite  Planning     .  57 

VI  Legislative    Enactments      ....  63 

VII  Contributing    Factors 69 

VIII  A  Gradual  Recession  in  Prices     .     .  75 

IX  Federal  Subsidies 79 

X     Transportation  Problems     ....     83 

a.  Railroad  Publicity. 

b.  Complex  Railroad  Problems. 

c.  Freight  Rates  and  Living  Costs. 

d.  Freight  Costs  on  Basic  Commodities. 

e.  Public  and  Private  Ownership. 

f.  The  Railroads  and  the  Farmer. 

XI     Sub-Normal  Efficiency  of  Labor     .  109 

13 


14  Contents 

CHAPTER  PAGE 

XII    More  Business  in  Government     .     .115 

a.  Government  Expenditures. 

b.  Budget  Reform. 

c.  The  True  Optimism. 

d.  Bureaucracy. 

e.  Federal  Aid. 

XIII  The  Final  Analysis 141 

XIV  The  City  and  the  Tax  Problem     .     .  149 

a.  Excess  Profit  Tax. 

b.  Over-taxation. 

c.  Tax-Exempt  Securities. 

d.  Taxes  and  Rentals. 

e.  Tax  on  Realty. 

f.  School  Tax. 

g.  School  Tax  Laws, 
h.    The  Sales  Tax. 

i.    Taxation  and  the  Profiteer, 
j.    Invisible  Taxation. 

XV     Standardization    of    Materials     .     .201 

XVI     Construction  Ethics 207 

XVII     The  City  and  the  Open  Shop     .     .  219 

a.  Housing  Plan. 

b.  Labor  Supervision. 

c.  A  Living  and  a  Saving  Wage. 

d.  Labor  Radicalism. 

XVIII     Arbitrations   and   Legislative   Com- 
missions     247 

a.  Legislative  Commissions. 

b.  Landis  Award. 

c.  Municipal  Waste. 


Contents  15 

CHAPTER  PAGE 

XIX     Destruction  vs.  Construction  .     .     .  263 
a.    Strikes  and  Lockouts. 

Zoning 273 

City  and  the  Alien     ....  283 
Literacy  Test. 
Americanization. 
Immigration  and  Labor. 
Immigration  and  Living  Costs. 
Human  Wealth. 
XXII     Municipal  Government 307 

a.  City  Commission. 

b.  City-Manager  Plan. 

XXIII     Bureau  of  Municipal  Research     .     .  333 

ADDENDA 
New  York  Law — Tax-Exemptions — Dwellings  341 

Illinois  Zoning  Law 343 

Index 351 

Illustrated  Examples  in  City  Planning. 


XX 

City 

XXI 

The 

a. 

b. 

c. 

d. 

e. 

THE  FUTURE  BUILDERS  OF  THE 
AMERICAN  CITY 


There  is  no  use  deluding  ourselves,  with  the 
fear  that  in  discussing  all  the  various  angles  of  the 
building  problems,  it  will  temporarily  retard  or 
discourage  building  construction. 

The  first  thing  for  all  of  us  to  do  is  to  find  the 
cause,  the  reason  why  the  builder  refuses  to  build 
and  analyze  the  conditions  so  far  as  we  are  able. 
No  one  can  force  capital  into  an  industry  in  con- 
travention of  all  economic  laws,  no  more  than  you 
can  force  water  up  hill  in  contravention  of  all 
natural  laws. 

We  want  the  flow  of  capital  into  the  building 
industry,  free,  steady  and  unhampered.  We  should 
approach  a  condition,  so  far  as  we  are  able,  that 
will  get  all  three  forces  co-operating,  not  reluc- 
tantly and  unnaturally,  but  freely  and  normally. 
This  cannot  be  done  by  covering  up  the  facts,  how- 
ever unpleasant  they  may  be,  for  by  so  doing,  the 
days  of  stabilization  are  pushed  still  further  away 
and  the  loss  and  damage  becomes  still  more  irre- 
parable. Let  us,  therefore,  face  the  situation  just 
as  it  is  and  not  only  prick  the  surface  of  public 
approval,  but  go  deeper  into  the  core  for  a  proper 
remedy. 

— Municipal  Problems,  1919. 


THE  FUTURE  BUILDERS  OF  THE 
AMERICAN   CITY 

The  question  now  being  asked  by  every 
municipality,  throughout  the  land,  is, — Who  are 
to  be  the  future  builders  of  the  American  City? 

We  quote  from  a  former  issue  of  Municipal 
Problems,  written  under  the  inspiration  of  the 
old  order  of  things,  existing  before  the  war,  the 
following : 

Every  community  is  made  up  of  two  classes 
of  citizens,  the  builder  and  the  non-builder. 

The  ambition  of  the  former  is  to  carry  out 
some  plan  of  building  construction.  To  this 
class  belongs  the  natural  builder,  he  who  has 
the  disposition  to  create  permanent  material 
evidences  of  the  city's  prosperity,  awaiting 
anxiously  for  the  opportunity  to  act.  He  who 
comes  under  this  classification  may  be  rich  or 
poor.  If  too  poor  to  finance  a  building  project, 
it  is  not  only  his  misfortune,  but  also  a  mis- 
fortune for  the  community,  the  ultimate  bene- 
ficiary. Equally  unfortunate  it  is,  if  the  non- 
builder  who  has  the  means  but  not  the  inclina- 
tion, refuses  to  put  a  portion  of  it,  at  least,  into 
some  constructive  work,  something  upon  which 
the  eye  may  rest  to  encourage  those  who  follow, 

19 


20         The  Destiny  of  the  American  City 

as  we  have  been  encouraged  by  those  who  have 
gone  before. 

He  who  comes  under  the  classification  of  non- 
builder,  may  also  belong  to  one  or  the  other  of 
these  extremes.  These  two  classifications  know 
no  property  distinction,  and  are  for  this  reason 
among  the  most  democratic  classifications  with 
which  we  have  to  deal. 

The  non-builder  may  be  a  lot  owner  with 
money  at  interest  and  naturally  a  non-builder; 
his  mind  and  inclinations  are  directed  towards 
other  lines. 

Fortunately,  it  may  be  that  we  are  not  all 
builders,  as  necessarily  we  must  have  the  equi- 
librium, some  of  both  to  balance  up  the  whole, 
each  to  play  his  part  in  making  up  what  may  be 
called  the  glorious  ensemble.  If  a  choice,  how- 
ever, had  to  be  made,  a  world  full  of  builders 
would  be  much  more  preferable  than  a  world 
full  of  non-builders. 

Another  question  crowding  closely  upon  this 
one  is:  Has  the  deplorable  conditions  sur- 
rounding the  building  industry,  in  the  last  two 
and  three  years,  weaned  away  from  this  great 
industry,  the  natural  builder?  He  who  had  the 
disposition  to  create  permanent  material  evi- 
dences of  the  city's  prosperity.  Or,  must  we  now 
look  elsewhere  for  others  and  newer  methods 
of  building  construction? 

Before  proceeding  further  on  this  subject  we 


The  Future  Builders  of  the  American  City    21 

again  quote  from  a  former  issue  of  Municipal 
Problems,  1917,  also  written  under  the  inspira- 
tion of  the  old  order  of  things,  the  following: 

Individualism 

We  say,  the  growth  and  character  of  a  city 
is  indicated  by  its  buildings  and  the  individual 
who  marshals  his  energies,  braces  his  nerve  and 
assumes  the  hazard  of  investing  his  capital  in 
the  material  construction  of  a  city  is  its  most 
valued  citizen;  for  it  is  to  him  the  greatest 
credit  is  due. 

A  man  who  builds  a  row  of  brick  flats  worth 
$75,000,  is  a  much  better  citizen  for  the  town 
than  the  one  who  loans  $75,000  and  feels  sat- 
isfied, merely  with  the  routine  of  calling  at  the 
bank  and  collecting  the  interest,  where  it  is 
made  payable.  The  man  who  erects  a  $300,000 
department  store,  anticipating  in  its  construc- 
tion the  growth  of  the  city  in  ten,  fifteen  and 
twenty  years,  is  a  much  better  man  for  the  city 
than  the  one  who  loans  out  the  same  amount 
and  feels  that  he  is  doing  all  that  duty  calls 
upon  him  to  do  as  a  citizen,  by  merely  clipping 
the  coupons  from  gilt  edge  securities. 

If  a  city  is  to  be  built,  one  hundred  men  in 
the  community  with  the  building  spirit,  are 
worth  more  than  one  thousand  without. 

It  is  not  the  fellow  who  tells  you  how  it  should 
be  done ;  it  is  the  fellow  who  does  it,  and  shows 
you  it  can  be  done. 


22         The  Destiny  of  the  American  City 

The  public  spirit  of  the  individual  is  not 
measured  so  much  by  what  he  says  as  by  what 
he  does  and  the  way  he  does  it. 

The  pioneers  were  the  fellows  who  acted  and 
did  not  preach;  they  preached  after  they  had 
something  to  preach  about. 

To  find  out  who  are  the  builders  of  the 
modern  cities  today,  all  that  is  necessary,  is  to 
stop  and  look  around  the  city  and  the  question 
is  easily  answered. 

The  first  thing  you  look  at  when  you  enter  the 
city  are  its  buildings.  When  you  find  one  that 
strikes  your  fancy,  you  find  yourself  uncon- 
sciously asking  the  question,  Who  built  that 
building?  It  will  be  found  that  in  nearly  every 
case,  it  is  the  individual  to  whom  all  credit  is 
due,  and  very  seldom  to  the  organization.  This 
may  be  said,  in  the  least,  without  any  reflection 
whatsoever  upon  the  organization. 

If  the  organization  is  unable  to  create  mate- 
rial improvements  for  the  upbuilding  of  a  city, 
it  is  nevertheless  within  its  province  to  improve 
the  conditions,  so  as  to  encourage  the  construc- 
tive genius  of  the  individual. 

This  is  not  a  plea  for  individualism  versus 
collectivism,  both  are  needed;  each  has  its  part 
to  play  in  the  great  symphony  of  life,  be  it  great 
or  small.  The  most  important  thing  is  that  the 
play  be  fair,  fair  to  the  organization  as  well  as 
fair  to  the  individual. 


The  Future  Builders  of  the  American  City    23 

Very  few  cities,  with  their  attractive  outlying 
districts,  have  been  designed  and  beautified  by 
public  organizations  or  contributions. 

In  looking  over  the  many  beautiful  modern 
cities  of  America,  they  will  be  found,  almost 
without  exception,  to  have  been  designed  and 
laid  out  by  the  private  individual,  primarily  it 
may  be  true,  for  the  profit  to  be  derived,  but 
nevertheless  to  the  advancement,  progress  and 
betterment  of  the  community. 

The  value  of  individual  effort  in  the  upbuild- 
ing of  a  city,  is  much  better  understood  by 
analyzing  your  own  city. 

For  example  look  over  your  own  business 
district  and  count  up  the  number  of  business 
buildings  that  represent  a  cost  of  $100,000  or 
more  and  see  how  many  you  have  and  who 
built  them. 

We  will  assume  you  have  five.  This  means 
an  investment  of  half  a  million  dollars  or  more. 
Now  continue  with  your  local  analysis  and  find 
out  when  one  was  built,  if  it  did  not  encourage 
the  erection  of  another?  After  you  have  rea- 
soned this  and  other  questions  out,  to  your  sat- 
isfaction, you  may  soliloquize  as  follows: 

"Suppose  these  five  men  who  built  these  five 
buildings  had  never  lived  in  this  town  and  these 
buildings  had  never  been  built,  what  an  inferior 
town  we  would  have." 

"Suppose  an  earthquake,  a  cyclone  or  a  Ger- 


24        The  Destiny  of  the  American  City 

man  zeppelin  would  blot  them  out  over  night, 
what  dismal  holes  they  Would  make." 

"Suppose  these  five  men  preferred  to  invest 
their  half  million  dollars,  or  more,  in  gilt  edge 
securities,  rather  than  assume  the  hazard  and 
risk  of  erecting  these  buildings,  where  would 
we  be?" 

The  more  you  analyze  the  question,  the 
greater  is  your  sense  of  appreciation  of  what 
these  five  men  have  done.  You  also  discover 
these  structures  have  created  centers,  purifying 
the  atmosphere  around  them,  creating  new 
values  within  a  radius  of  several  blocks,  from 
which  other  improvements  will  radiate.  You 
will  commence  to  wonder  and  may  possibly  ex- 
claim: "Isn't  it  marvelous  what  a  handful  of 
men  by  individual  effort  can  do  for  a  town !" 

For  a  moment  you  cease  to  analyze;  the 
stranger  you  have  just  met  breaks  into  your 
reverie.  You  are  immediately  awakened  to  the 
external  beauties  of  the  scene.  "Oh,  yes,"  you 
tell  the  stranger,  "this  is  my  town."  You  swell  up 
with  pride  when  showing  him  some  of  "our 
buildings,"  "equal,"  you  tell  him,  "to  the  build- 
ings in  towns  twice  the  size  of  ours."  With 
patriotic  fervor,  you  elaborate  on  the  struc- 
tures, the  character  and  growth  of  our  city,  until 
the  stranger  is  firmly  convinced,  from  the  evi- 
dence at  hand,  that  the  town  is  just  about  what 
you  say  it  is. 


The  Future  Builders  of  the  American  City    25 

You  appreciate  now,  more  than  ever,  what 
this  handful  of  individuals  have  done;  not  only 
for  your  town,  but  for  you  as  well,  by  creating 
within  you,  a  personal  feeling  of  pride  for  the 
town  in  which  you  live. 

Every  handful  of  men  you  can  get  to  do  what 
this  handful  has  done,  the  prouder  you  will 
become  and  the  greater  city  you  will  have. 

It  behooves  us,  therefore,  to  recognize,  foster 
and  encourage  the  constructive  genius  of  men 
such  as  these;  those  who  have  the  disposition 
to  create  permanent  material  evidences  of  the 
city's  prosperity.  There  is  nothing  quite  so  con- 
vincing as  that  which  the  eye  may  see. 

Dream  cities,  word  pictures,  visions  and  fan- 
tastic fancies  of  the  theoretical  enthusiast,  all 
inspiring  flashlights  of  the  hour,  are  as  nothing 
compared  to  tangible  and  material  creations 
such  as  these. 

You  see  there  is  nothing  selfish  or  exclusive 
about  a  building.  You  found  that  out  when  you 
met  the  stranger  on  the  street,  as  the  minute 
before  you  were  thinking  of  the  individual  who 
built  the  building  and  the  next  minute  you  were 
assuming,  without  a  protest,  a  proprietorship 
not  only  over  the  buildings,  but  over  the  whole 
city  as  well,  by  referring  to  them  as  "our  build- 
ings" and  "our  city." 

The  owner  of  the  building,  it  is  true,  holds 
legal  title,  but  on  the  other  hand,  in  the  con- 


26        The  Destiny  of  the  American  City 

struction  of  a  building,  the  city  and  the  public 
became  permanently  possessed  of  an  element 
of  proprietorship  which  cannot  be  reconveyed 
and  of  which  it  cannot  become  dispossessed. 
The  building's  complacent  attitude  is,  "I  belong 
to  the  city,  this  is  my  permanent  status;  to  me 
whoever  holds  title,  is  a  matter  of  utmost  indif- 
ference, for  this  is  merely  temporary  and  tran- 
sitory." 

All  hail  to  the  builders.  If  pyramids  cannot 
be  built  to  stand  the  ages  of  time,  build  what 
you  can  in  the  most  permanent  way,  for  upon 
your  foundation  others  will  continue  to  build, 
as  we  are  now  doing,  upon  the  foundation  of 
the  pioneers  who  have  gone  before. 

How  Are  You  Classified? 

It  would  not  be  amiss  to  ask  yourself  the  ques- 
tion: Under  what  classification  do  I  belong? 
How  much  have  I  contributed  to  the  material 
upbuilding  of  the  city  in  which  I  reside? 

An  inventory  of  what  has  been  done  may  not 
place  you  possibly,  in  the  one  hundred  thousand 
dollar  classification,  but  it  may  place  you  in  the 
seventy-five,  fifty,  twenty-five,  ten  or  five  thou- 
sand dollar  class.  No  difference  what  classifi- 
cation you  are  in,  you  must  know  it  is  more 
your  city  than  it  is  the  fellow  who  comes  under 
no  classification  whatsoever.  It  might  surprise 
you  when  you  figure  it  out,  what  a  good  classi- 


The  Future  Builders  of  the  American  City    27 

fication  you  are  really  in.  Did  you  ever  try  it? 
If  not,  try  it  sometime  and  find  out  where  you 
really  belong. 

Some  men  are,  temperamentally,  builders, 
naturally  so,  while  there  are  others  who  are  not. 
It  may  be  an  extremely  easy  and  pleasant  avoca- 
tion for  one  and  an  abhorrent  task  for  another. 
To  create  something,  in  a  material  way,  may 
be  the  life  ambition  of  one  and  a  very  trying 
ordeal  for  another. 

One  may  encourage  a  public  improvement 
and  willingly  share  its  cost;  another  feels  his 
inherent  rights  invaded  and  files  his  fiery  pro- 
test. 

These  are  different  viewpoints,  from  which 
a  number  may  look  at  the  same  thing,  and  their 
reconciliation  to  the  public  good,  is  the  prob- 
lem which  must  be  continually  solved  so  long 
as  we  remain  human  beings. 

Our  object  in  contrasting  the  viewpoint  of 
two  and  three  years  ago,  written  under  the 
inspiration  of  conditions  existing,  prior  to  that 
time,  with  the  viewpoint  now  under  the  new 
order  of  things,  is  to  show  how  far  and  how  fast 
the  world  has  traveled  in  so  short  a  time  as  to 
seem  almost,  as  if  a  period  of  several  genera- 
tions have  been  taken  to  make  so  great  a  change 
in  the  conditions  that  now  surround  the  build- 
ing industry. 

In  this  we  have  shown  that  our  cities,  great 


28        The  Destiny  of  the  American  City 

as  they  have  become,  have  been  the  result  of 
individual  effort  and  initiative  on  the  part  of 
the  natural  builder,  and  that  which  has  inspired 
him  to  build  is  fast  disappearing,  compelling 
him  to  gather  up  his  initiative  and  his  capital 
and  turn  his  eyes  toward  other  fields  more  fer- 
tile and  with  offers  of  greater  promise. 

To  this  type  of  American  citizenship  we  must 
now  make  our  appeal. 

What  can  we  do  to  retain  it?  What  beacon 
lights  of  encouragement  can  we  flash  across  the 
pathway  that  will  summon  to  our  aid,  the 
future  builders  of  the  American  city? 

The  empire  builder  sighs 

As  he  turns  away  his  eyes 

From  the  picture  he  has  cherished 

With  the  dreams  of  conquests,  perished. 

From  his  vision  slowly  fades, 
Donjon  towers  and  palisades, 
Parapets  and  marble  halls, 
And  many  things,  fond  memory  calls. 

To  other  flights  his  fancy  goes, 
To  other  deeds  his  valor  flows, 
In  other  climes  he  sees  the  light, 
In  other  battles  leads  the  fight. 


II 

WHAT  MAY  BE  DONE 


All  hail  to  the  builder.  If  pyramids 
cannot  be  built  to  stand  the  ages  of  time, 
build  what  you  can  in  the  most  permanent 
way,  for  upon  your  foundation  others  will 
build,  as  we  are  now  doing  upon  the 
foundation  of  the  pioneers  who  have  gone 
before. 

— Municipal  Problems,  1919. 


WHAT  MAY  BE  DONE* 

If  the  individual  does  not  build,  who  will,  the 
state  or  the  municipality? 

Are  we  gradually  passing  from  an  age  of 
individualism  into  one  of  collectivism? 

Are  the  days  of  the  pioneer  and  empire 
builder  a  thing  of  the  past? 

If  doubt  there  be,  the  question  is:  what  can 
be  done  to  retain  the  initiative,  to  inspire  the 
vision,  to  give  courage  and  inspiration  to  the 
one  who  must  dare  and  do  the  material  things 
that  should  and  must  now  be  done. 

What  aid  is  given  should  not  be  in  continuing 
to  feed  academic  advice  by  experts,  endeavor- 
ing to  explain  why  he  can  and  should  build. 

It  is  from  this  source  that  all  his  nourish- 
ment for  the  past  few  years  have  been  obtained, 
with  the  consequent  result  that  discouragement 
and  despair  are  now  his  portion.  His  constant 
appeal  has  been  for  a  change  of  diet.  The  first 
thing  wanted  is  something  that  will  place  all 
the  material  and  labor  that  enters  into  building 
construction  into  his  hands,  as  direct  from  the 
original  source  as  possible  at  a  reasonable 
figure,  divested  of  all  exploitations,  unusual 
charges  and  exorbitant  profits. 

♦See  Preface. 

31 


32        The  Destiny  of  the  American  City 

Some  of  the  causes  of  the  stagnation  in  the 
building  industry  throughout  the  country  are : 

First:  Material  nearly  150  per  cent  higher 
than  in  1914,  despite  some  reduction  in  lumber 
prices. 

Second:  Alleged  graft  and  blackmail  by 
building  officials  in  some  localities,  adding  mil- 
lions to  building  cost. 

Third:  Difficulty  in  negotiating  building 
loans. 

Fourth:     High  wages. 

Fifth:  Building  union  restrictions  in  some 
localities  in  using  materials. 

Sixth:     Sub-normal  efficiency  of  labor. 

Seventh :     Transportation. 

Eighth:     Taxation. 

The  building  industry  is  basic,  upon  it  de- 
pends the  stimulation  of  industrial  progress  in 
every  line. 

The  expansion  of  the  building  industry 
means,  first  of  all,  employment.  When  the  great 
army  of  builders  throughout  the  country  once 
get  into  action,  all  kinds  of  employment  will  be 
stimulated.  Material  to  the  workmen  calls  for 
transportation,  which  creates  a  whole  industrial 
army. 

Increase  the  earning  power  of  labor  and  you 
increase  its  purchasing  power,  and  the  magic 
wand  consequently  will  start  the  flow  of  prog- 
ress throughout  every  artery  and  channel  of  in- 
dustrial activity. 


What  May  Be  Done  33 

Many  of  the  abuses  and  restrictions  to  the 
building  industry  can  be  eliminated.  In  doing 
this  the  questions  arise: 

What  can  the  municipalities  do? 

What  can  the  state  government  do? 

What  can  the  federal  government  do? 

What  can  civic  bodies  do? 

What  can  industrial  leaders  do? 

What  can  the  triangle  (labor,  materialmen, 
contractors)  do? 

What  can  all  these  factors  do,  severally  and 
jointly,  in  forcing  the  friction  out  of  the  build- 
ing industry  and  relieving  it  of  the  many  uncer- 
tainties surrounding  it  that  inevitably  spells 
stagnation? 

It  is  not  at  all  surprising  that  the  practical 
man  of  affairs,  anxious  to  build,  knowing  the 
conditions  were  such  as  to  be  suicidal  from  a 
financial  viewpoint,  should  turn  away  in  despair 
when  repeated  appeals  were  issued  to  build, 
first  by  the  federal  government,  in  order  to  give 
employment  to  returning  soldiers;  then  by  the 
experts  in  political  economy,  who  reasoned  out 
that  no  decline  in  prices  would  take  place,  to 
any  great  extent,  for  ten  or  more  years. 

Then  the  subscription  plan,  for  one-half  the 
population  to  subscribe  to  a  fund  to  build 
houses  for  the  other  half.  One  hundred  in- 
dividuals with  one  hundred  different  remedies, 
with  the  result  that  all  avenues  of  relief  during 


34        The  Destiny  of  the  American  City 

all  this  time  were  blocked  by  the  same  stone 
wall  that  is  blocking  them  now,  and  which  we 
are  still  calling  upon  to  be  removed. 

The  Municipality 

What  are  the  things  municipalities  can  do  to 
encourage  individuals  to  build?  Whatever  the 
city  is  able  to  do  for  the  individual,  it  must  also 
do  for  itself. 

City  officials,  who  are  endeavoring  to  outline 
policies  for  the  proper  guidance  of  municipal 
affairs  throughout  the  land,  are  now  having 
their  trials  and  tribulations. 

Their  duty,  a  very  trying  and  difficult  one, 
is  to  reconcile  the  extreme  radical  and  con- 
servative element  on  just  how  far  we  should 
now  go  in  advancing  public  improvements,  in 
an  abnormally  high  building  market. 

Fortunate  are  the  cities  whose  destinies  are 
controlled  by  those  in  power,  who  have  the 
foresight,  wisdom  and  fortitude  during  these 
abnormal  times,  to  eliminate  every  specie  of 
exploitations  and  in  the  practice  of  the  strictest 
economy  guide  the  ship  close  to  the  middle  of 
the  road  course,  until  this  period  of  uncertainty 
becomes  stabilized  and  further  removed  from 
the  things  that  have  not  only  unsettled  the 
actions  of  the  individual,  but  his  reasoning 
powers  as  well. 

Cities  have   their  vanities  the   same   as  in- 


What  May  Be  Done  35 

dividuals.  The  new  hat  for  the  neighbor's  wife 
calls  for  a  new  hat  for  yours.  It  is  impossible 
for  her  to  take  any  position  other  than  the  one 
that  she  is  just  as  good  and  her  husband  is  just 
as  able.  The  argument  that  a  better  and  a  finer 
hat  later  on  will  be  the  reward,  availeth  not. 

There  are  times,  however,  when  cities,  like 
individuals,  can  forego  luxuries  and  tem- 
porarily practice  at  least  a  little  self-denial  with 
excellent  results,  without  causing  very  much 
criticism.  If  perchance  some  criticism  is  of- 
fered, it  must  be  remembered  that  it  is  of  a 
kind  that  will  soon  vaporize,  and  that  "he  who 
laughs  last  laughs  best." 

Building  an  overcoat  around  a  hole  in  the 
old  one  has  become  a  favorite  pastime  the  last 
few  years,  and  extremely  popular.  Many  have 
practiced  it  and  proud  of  the  fact;  others  have 
not.  Those  who  did  now  have  not  only  a  little 
more  overcoat,  but  a  little  more  money  to  go 
with  it. 

The  tendency  of  all  governing  bodies,  for 
several  years  to  come,  will  be  toward  conserva- 
tive lines,  closely  drawn,  relieving  taxation  and 
burdens  whenever  it  is  possible  to  do  so,  in 
order  that  the  individual  who  has  facilities  and 
ability  for  building  up  our  cities,  be  given  a 
short  respite  or  breathing  spell  in  which  to 
gather  up  the  ragged  ends  and  inventorying 
assets,  which  can  not  be  done  until  values  be- 
come more  stable. 


36        The  Destiny  of  the  American  City 

It  is  a  thing  that  is  absolutely  necessary  to 
do  or  a  good  start  will  never  be  made  and  the 
day  of  settlement  further  deferred. 

In  other  words,  the  goose  that  has  been  laying 
the  golden  egg  for  the  development  of  our  cities 
must  be  fed  and  fattened  before  it  becomes  too 
lean  to  functionate. 

Patience,  combined  with  the  practice  of  some 
self-denial,  is  at  this  particular  time  a  cardinal 
virtue  and  will  reap  its  own  reward. 

The  middle  of  the  road  course  will  become  the 
popular  route  for  the  next  few  years  to  travel. 
He  who  is  willing  to  plod  its  course  patiently 
will  multiply  his  facilities8  for  doing  more  and 
doing  it  faster,  when  the  present  tension  be- 
comes relaxed,  than  he  who  fights  the  condi- 
tions that  now  are  confronting  us  impatiently, 
without  going  far  enough  to  reason  out  and 
analyze  the  fundamental  cause. 

A  Period  for  Corrective  Measures 

It  has  been  suggested  that  the  federal  gov- 
ernment supply  several  billion  dollars  to  stimu- 
late the  building  industry. 

It  is  getting  to  be  quite  the  custom  now  for 
different  industries  to  look  to  the  federal  gov- 
ernment for  financial  relief. 

The  pampered  child  is  oftentimes  injured  by 
too  many  indulgences  and  greatly  benefited  by 
a  few  stern  denials. 


What  May  Be  Done  37 

This  is  a  period  for  corrective  measures 
rather  than  one  for  artificial  stimulation. 

Artificial  stimulants  to  a  patient  sometimes 
proves  bad  in  reaction.  The  best  course  is  to 
first  cure  the  evil. 

The  building  industry  is  not  seeking  a  tem- 
porary stimulant  with  the  same  handicap  in 
existence  that  must  be  eventually  eliminated. 

What  the  building  industry  wants  is  a  period 
of  rest  to  correct  abuses,  rather  than  temporary 
stimulation  that  will  also  tend  to  stimulate 
abuses. 

The  question  is,  had  we  better  take  our  medi- 
cine now  and  settle,  or  seek  a  temporary  relief 
followed  by  a  still  greater  loss,  or  in  other 
words,  shall  we  correct  and  lose  now  or  stimu- 
late and  lose  later? 

Had  we  better  go  slow  and  end  up  fast,  or 
go  fast  and  end  up  slow?  Will  it  be  fast  and 
temporary,  or  slow  and  permanent? 

If  three  months  is  not  sufficient,  will  it  be  best 
to  take  six  and  correct  first,  no  difference  how 
long  it  takes? 

The  force  of  necessity  and  deliberation  some- 
times makes  sweeping  corrections  and  accom- 
plishes a  great  deal  towards  stabilizing  the  mind 
in  choosing  a  proper  course  of  action  and  for 
which  nothing  else  can  be  substituted. 


Ill 

PUBLIC  IMPROVEMENTS 


Some  people  look  on  government  as  a  sort  of 
magic.  It  has  only  to  wave  its  wand  and  presto! 
the  genie  is  summoned  from  the  bottle  and  things 
begin  to  happen.  The  ordinary  person  has  to  save 
to  get  ahead.  The  government  is  free  from  all 
these  crude  limitations.  All  it  needs  to  do  is  to 
say:     'Let  there  be  money,'  and  there  is  money. 

If  you  or  I  should  undertake  to  build  a  power 
plant  and  were  without  the  necessary  funds,  we 
should  have  to  borrow  and  pay  somebody  for  the 
use  of  the  money. 

How  is  it  different?  The  government  is  made 
up  of  you  and  me  and  the  rest  of  us,  associated  in 
various  activities.  Its  only  resources  are  the  funds 
which  it  gets  when  it  writes  us  to  please  remit. 
In  Russia  and  Central  Europe  when  people  didn't 
remit,  it  tried  to  trade  on  this  widespread  impres- 
sion of  government  magic,  and  printed  money, 
bales  of  it,  millions  and  billions  and  trillions  of 
dollars  worth.  Pretty  soon  people  saw  the  magic 
was  a  fraud  and  now  the  money  isn't  worth  any- 
thing. 

No,  the  only  way  you  or  I  can  get  money  for 
development  work  is  by  borrowing  from  somebody 
who  has  saved  it,  and  paying  him  for  the  use 
of  it.  The  only  way  you  and  I  and  Smith  and 
Jones,  associated  in  a  common  enterprise  called 
the  United  States  Government,  can  get  money  for 
Muscle  Shoals  plant  or  any  other  thing,  is  to  bor- 
row it  and  pay  for  its  use. 

— Selected. 


PUBLIC  IMPROVEMENTS 

Every  community  is  made  up  of  three  classes 
of  citizens. 

First:  Those  who  are  for  public  improve- 
ments, limited  only  by  the  conditions  that  sur- 
round the  community,  locally  and  the  general 
conditions  of  the  country  at  large,  but  at  the 
same  time  for  progress  and  development. 

Secondly :  Those  in  favor  of  public  improve- 
ment at  all  times,  regardless  of  local  and  gen- 
eral conditions,  as  an  expedient  to  start  into 
activity  the  wheel  of  industry.  This,  being  the 
primary  consideration  and  incidental  to  the  one 
as  to  cost,  whether  the  cost  of  the  expedient  is 
distributed  equitably  throughout  the  commun- 
ity, or  not. 

Thirdly:  Those  who  are  against  public  im- 
provements regardless  of  conditions  locally,  and 
against  progress  in  general.  Those  without 
vision,  satisfied  to  remain  just  as  we  are  and 
willing  to  remain  so  forever  and  commonly 
known  and  classified  as  "chronic  kickers." 

It  may  be  necessary  to  say,  however,  whenever 
an  improvement  is  submitted  to  the  public  for 
consideration,  handicapped  as  we  are  at  the 
present  time  with  an  extraordinary  abnormal 

41 


42        The  Destiny  of  the  American  City 

condition,  it  is  just  that  the  individual  who  pays 
the  cost  should  have  the  right  to  file  his  protests, 
backed  by  good  economic  reasons,  without  fear 
of  being  subjected  to  too  much  criticism  and 
public  denunciations. 

At  the  same  time  it  must  also  be  remembered 
that  there  has  never  been  a  time  when  a  public 
improvement  ever  received  the  unanimous  con- 
sent of  all,  without  protest  from  those  who  are 
never  for  anything  at  any  time,  regardless  what 
the  conditions  may  be. 

What  Is  a  Public  Improvement? 

A  public  improvement  is,  in  fact,  nothing 
more  than  a  private  investment. 

It  differs,  however,  from  the  ordinary  run  of 
private  investments,  in  the  fact  that  it  is  not 
altogether  voluntary  on  the  part  of  the  investor. 
It  is  an  involuntary  investment  made  for  him 
by  the  taxing  body.  It  is  not  based  altogether 
upon  the  judgment  of  the  investor,  but  on  the 
judgment  of  the  taxing  body  for  the  public  good. 

While  called  a  public  improvement,  no  part 
of  the  cost,  according  to  the  present  ruling  in 
some  states,  is  paid  by  the  public,  but  solely  by 
the  investor  or  property  owner. 

The  improvement  is  called  public  because  it 
is  constructed  for  the  use  of  the  public.  In 
making  these  improvements  a  taxing  body  has 
the  moral  support  of  the  immune,  who  are  at 


Public  Improvements  43 

all  times  free  from  any  and  all  taxation  of  this 
kind,  as  well  as  other  voters  in  the  community 
who  happen  to  be  just  outside  of  the  particular 
zone  of  improvement. 

It  places,  therefore,  a  very  powerful  weapon 
in  the  hands  of  the  taxing  body,  and  every  care 
and  precaution  should  be  taken  at  all  times  in 
using  it  wisely,  judicially  and  with  discretion. 

Forcing  through  public  improvements  at  the 
point  of  the  bayonet,  is  not  what  taxing  bodies 
desire,  and  never  a  method  that  should  be  too 
strongly  advocated. 

The  same  rule  should  govern  cities  that 
govern  individuals  in  purchasing  material,  em- 
ploying labor,  placing  contracts  and  studying 
markets  in  order  to  avoid  a  high  market  on  the 
eve  of  the  lower  one. 

Careful  and  conscientious  investigation  by  the 
municipality,  co-operating  with  the  state  and 
federal  government  in  an  effort  to  correct  abuses 
and  analyze  local  causes,  if  any,  that  in  any  way 
have  a  tendency  to  encourage  building  stagna- 
tion. 

The  wisdom  of  too  much  overzealousness  on 
the  part  of  taxing  bodies  in  responding  to  the 
public  cry  to  start  public  improvements  when- 
ever everything  else  has  stopped,  and  for  good 
and  sufficient  economic  reasons  refuse  to  start, 
is  always  questionable. 

Naturally  the  voter  who  pays  the  bill  gives 


44        The  Destiny  of  the  American  City 

the  question  of  taxation  more  serious  thought 
and  consideration  than  the  more  voluble,  and 
oftentimes  more  eloquent  advocate  of  civic 
advancement,  who  pays  only  a  nominal  amount 
of  the  cost  of  government. 

Maximum  Improvements  at  Minimum  Cost 

Another  slogan  has  been  enunciated  by  our 
own  state  government,  having  the  proper  ring, 
and  one  that  should  reverberate  throughout 
every  state  and  municipality  in  the  land,  as  con- 
taining a  fundamental  principle  worthy  of 
adoption  by  all.  We  refer  to  the  one  adopted  in 
the  good-road  program,  which  proclaims:  "The 
maximum  mileage  at  the  minimum  cost." 

In  the  program  outlined  for  good  roads  in 
the  State  of  Illinois,  we  find  it  surrounded  by 
the  same  atmosphere  that  enshrouds  many  pub- 
lic improvements  contemplated  by  the  federal 
government,  the  state  or  municipality,  created 
by  those  who  are  for  improvements  regardless 
of  cost,  and  the  immunes  who  are  practically 
exempt  from  all  taxation,  as  well  as  those  per- 
sonally and  financially  interested  in  the  project, 
directly  or  indirectly. 

While  it  is  true,  the  argument  against  any 
delay  in  highway  building  is  quite  convincing 
when  you  stop  to  figure  out  the  increased  value 
of  farm  land  as  a  result  of  good  roads,  in  filling 
up  important  gaps,  making  through  traffic  pos- 


Public  Improvements  45 

sible,  eliminating  loss  and  waste.  Nevertheless, 
all  must  admit  that  the  placing  of  contracts  in- 
discriminately, without  effort  on  the  part  of  the 
official  to  first  correct  the  abuses  that  have  crept 
into  building  industry,  would  be  open  to  still 
greater  criticism. 

Condoning  and  tacitly  abetting  in  a  profiteer- 
ing program  for  the  construction  of  public  im- 
provements on  the  part  of  any  official  for  the 
benefit  of  the  few,  in  its  moral  effect,  would  be 
bad  and  detrimental  to  every  other  industrial 
group  conscientiously  endeavoring  to  correct 
these  abuses  within  its  own  camp. 

So  far  as  the  question  of  personal  motive  is 
concerned,  on  the  part  of  any  official  enunciat- 
ing such  a  principle,  it  is  not  within  our  prov- 
ince here  to  discuss. 

All  we  are  primarily  interested  in  is  the  oper- 
ation of  good  business  principles  and  their  prac- 
tical application  to  governmental  affairs. 

They  may  kill  the  man  politically  who  enun- 
ciates a  good  principle,  but  no  one  ever  will  be 
able  to  kill  a  good  principle. 

It  has  been  a  very  unusual  thing,  however,  to 
find,  in  present-day  publications,  the  enuncia- 
tion of  such  a  principle,  followed  by  any  attempt 
at  a  practical  application,  emanating  from  an 
official  source. 

The  enunciation  of  such  a  principle  at  the 
present  time,  while  so  unusual,  is  nevertheless 


46        The  Destiny  of  the  American  City 

of  so  much  vital  importance  that  we  cannot  re- 
frain from  using  it  here,  in  the  manner  we  are 
doing,  even  with  a  possibility  of  being  accused 
of  joining  in  a  controversy  of  which,  personally, 
we  know  nothing. 

This  slogan,  applied  to  the  municipality  and 
proclaiming  "the  maximum  amount  of  public 
improvements  at  the  minimum  cost"  and  con- 
scientiously followed  by  city  officials  and  civic 
organizations,  would  be  an  incentive  to  the 
individual  to  invest  and  the  builder  to  build. 

A  city  known  to  be  controlled  and  managed 
by  business  experts  would  redound  more  to  its 
growth  and  rapid  development  than  any  other 
known  agency. 

It  has  been  said  by  another  that  "New  York 
City  is  in  debt  more  than  a  thousand  million 
dollars.  One  citizen,  if  it  were  possible  to 
realize  on  his  possessions  at  their  full  value, 
could  pay  the  debt  of  the  city  and  have  more 
than  a  thousand  million  left. 

"If  this  man  fifty  years  ago  had  been  put  in 
charge  of  the  city's  finances  with  power  to 
develop  its  street  cars,  wharves,  real  estate,  gas, 
electric  light,  telephone  and  other  natural 
monopolies  for  the  public  benefit,  New  York 
City  wouldn't  owe  a  dollar,  would  have  no  dis- 
graceful slums  and  would  have  a  thousand  mil- 
lions in  the  bank,  if  it  chose. 

"At  this  point  in  our  progress  toward  civiliza- 


Public  Improvements  47 

tion  exceptional  individual  intelligence  seems 
to  be  devoted  to  exploiting  the  masses.  Later 
it  may  strive  to  protect  them,  then  many  prob- 
lems will  be  solved." 


IV 
OFFICIAL  CO-OPERATION 


Municipal  institutions  constitute 
the  strength  of  free  nations. 

A  nation  may  establish  a  system 
of  free  government,  but  without 
municipal  institutions  it  cannot  have 
the  spirit  of  liberty. 

— Selected, 


OFFICIAL  CO-OPERATION 

Somewhere  in  the  middle  west,  a  number  of 
years  ago,  a  man  was  elected  to  the  office  of 
mayor  of  a  city. 

Being  a  man  of  affairs,  intelligent  and  ex- 
tremely practical,  with  sane  ideals,  he  was 
broad  enough  withal  to  realize  that  nothing  of 
importance  could  be  accomplished  without  the 
co-operation   and  support  of  his  constituents. 

His  determination  and  conscientious  endeavor 
was  to  give  to  the  city  the  very  best  administra- 
tion within  his  power. 

He  did  not  take  the  usual  course  of  arbitrarily 
planning  out  a  program  of  what  in  his  power 
and  might  as  an  official  he  could  and  would  do, 
with  the  assistance  of  co-workers  that  usually 
bask  and  thrive  in  the  smiles  of  official  patron- 
age, but  in  the  most  unconventional,  unassum- 
ing and  democratic  manner  selected  twenty  or 
more  representative  citizens  to  act  as  a  munic- 
ipal cabinet,  with  whom  to  confer,  confide  and 
advise  in  regard  to  the  various  municipal  prob- 
lems arising,  from  time  to  time,  for  solution. 

In  the  selection  of  members  for  a  municipal 
cabinet  he  did  not  confine  himself  altogether  to 
his  friends  and  political  supporters,  but  went 

51 


52        The  Destiny  of  the  American  City 

outside,  basing  his  selections  purely  upon  the 
aptitude,  experience  and  ability  of  the  indi- 
vidual to  solve  the  various  problems  and  carry 
out  the  program  outlined,  effectively,  correctly 
and  economically. 

The  result  was  he  obtained  the  concentration 
of  all  the  best  minds  of  the  community  upon 
every  important  official  act  of  his  administra- 
tion, resulting  in  maximum  benefit  to  the  city 
and  reducing  to  the  minimum  costly  mistakes 
that  seem  to  be  part  and  parcel  of  the  present 
day  municipal  government. 

By  this  method  it  was  found  that  he  elimi- 
nated waste,  pull,  extravagance  and  favoritism. 
It  gave  publicity  to  all  details  to  the  gratification 
of  the  most  exacting. 

There  was  nothing  hidden  or  obscure  in  the 
bookkeeping.  It  was  an  open  book,  accessible 
to  all  members  of  the  firm  alike. 

A  business  administration,  pure  and  simple, 
that  might  be  likened  unto  a  business  corpora- 
tion, with  heads,  directors,  and  stockholders, 
jointly  mapping  out  policies  and  devising  ways 
and  means  to  economically  execute  them. 

Every  suggestion,  from  every  conceivable 
source,  from  both  rich  and  poor  alike,  was 
given  due  and  courteous  consideration  for  the 
purpose  of  seeing  how  much  good  could  be 
gleaned  therefrom  to  offer  at  the  shrine  of 
public  welfare. 


Official  Co-operation  53 

Every  problem  was  thoroughly  analyzed, 
carefully  deliberated  and  most  thoroughly  re- 
viewed for  the  purpose  of  obtaining  the  wisest 
solution  for  the  greatest  number. 

The  position  was  taken  that  no  administra- 
tion, working  wholly  in  the  interest  of  the  city, 
can  afford  to  ignore  protests  and  objections  to 
official  acts,  which  in  the  mind  of  a  single  in- 
dividual is  an  infringement  of  his  right  and 
detrimental  to  his  interests. 

Neither  did  he  countenance  the  plan  of  brow- 
beating a  citizenry  into  subjection,  by  holding 
them  up  to  ridicule  and  public  denunciation  as 
undesirable  and  unprogressive  on  any  issue  of 
administrative  policy,  but  on  the  contrary  to 
make  conversions  to  progressivism  possible  by 
offering  a  public  forum,  whereby  all  might 
appear  without  fear  or  prejudice  to  offer  the 
best  thought,  for  the  greatest  good,  to  all  con- 
cerned. 

For  it  must  be  remembered,  he  said,  "the  city 
is  just  as  much  your  city  as  it  is  the  city  of  the 
official  to  whose  position  you  have  contributed 
your  support." 

From  this  example  of  an  ideal  municipal 
administrative  policy,  we  now  turn  to  the  same 
principle  being  applied  by  the  federal  govern- 
ment in  calling  together  the  best  minds  of  the 
nation,  regardless  of  party  affiliations,  to  assist 
in  solving  the  complex  problems  of  state. 


54        The  Destiny  of  the  American  City 

History  has  conclusively  shown  and  is  replete 
with  many  notable  examples  showing  that 
greatness  on  the  part  of  the  individual  in  the 
administration  of  public  affairs  is  never  dimin- 
ished by  the  democratic  exchange  of  ideas,  but 
on  the  contrary  materially  enhanced  and  bene- 
fited, while  autocratic  egotism,  to  both  indi- 
vidual and  state,  is  a  menace  and  spells  the 
greatest  loss  and  failure  of  the  hour. 


DELIBERATE  AND  DEFINITE 
PLANNING 


The  city  is  the  spectroscope  of  society; 
it  analyzes  and  sifts  the  population,  sepa- 
rating and  classifying  the  diverse  elements. 
The  entire  progress  of  civilization  is  a 
process  of  differentiation,  and  the  city  is 
the  greatest  differentiator.  The  mediocrity 
of  the  country  is  transformed  by  the  city 
into  the  highest  talent  or  the  lowest. 
Genius  is  often  born  in  the  country,  but  it 
is  brought  to  light  and  developed  by  the 
city. 

—Weber. 


DELIBERATE  AND  DEFINITE 
PLANNING 

No  extended  plan  of  public  improvements 
should  be  pushed  forward,  under  the  emo- 
tion of  the  hour,  without  proper  planning,  in 
advance,  for  a  term  of  years. 

A  city  is  built  for  the  ages,  for  those  who  are 
to  follow,  not  alone  for  the  present  generation. 
A  definite  and  positive  planning  system  of 
development  gives  it  prestige,  character  and 
individuality. 

An  individual  with  marked  elements  of  future 
greatness  is  an  attractive  personality,  at  whose 
shrine  the  world  is  ready  and  willing  to  bow. 

A  city  with  a  positive  future,  well  defined, 
under  the  control  of  the  master  mind  is  an  asset, 
not  alone  for  the  city  itself  to  enjoy,  but  for  the 
individual  who  is  induced  to  join  in  the  march 
towards  the  promised  goal,  reaping  enroute  the 
reward  at  each  and  every  mile  post. 

The  owners  of  property,  the  ones  who  must 
pay  the  price,  should  organize,  not  for  the  pur- 
pose of  retarding  public  improvement,  but  to 
encourage  along  common-sense,  economical  and 
business  lines,  in  taking  every  safeguard  and 
employing   every   known   business   method   in 

57 


58        The  Destiny  of  the  American  City 

negotiating  contracts  and  thoroughly  studying 
markets,  so  that  the  greatest  amount  of  public 
improvements  may  be  purchased  at  the 
minimum  cost. 

Municipalities  are  fast  coming  to  the  con- 
clusion, that  in  order  to  make  public  improve- 
ments popular,  in  obtaining  converts  instead  of 
objectors,  it  is  quite  necessary  that  same  shall 
not  be  pushed  forward  without  regard  to  the 
economies  and  the  consideration  of  those  who 
are  to  pay  the  cost. 

Civic  organizations  become  remiss  in  their 
duties  when  they  stimulate  an  extensive  pub- 
lic improvement  campaign,  without  giving 
more  than  casual  consideration  to  economical 
methods  of  construction. 

Nothing  should  be  attempted  in  a  big  way  in 
outlining  an  extensive  public  improvement  cam- 
paign, without  getting  the  greatest  co-ordinators 
of  the  community  enlisted  to  work  out  a  plan, 
by  first  making  a  careful  preliminary  analysis, 
with  proper  and  thorough  investigation  and  full 
knowledge  of  the  best  methods  of  eliminating 
waste  and  reducing  cost  before  final  action  is 
taken. 

It  is  easy  enough  for  the  enthusiastic  and 
zealous  public  welfare  workers  to  complete  a 
list  of  the  many  things  that  should  be  done, 
without  giving  much  thought  to  the  more  diffi- 
cult task  of  providing  ways  and  means  of 
economically  doing  them. 


Deliberate  and  Definite  Planning  59 

The  period  through  which  we  are  now  pass- 
ing, encumbered  as  it  is  with  the  heritage  of 
the  most  wasteful  war  of  Christendom,  is,  pri- 
marily, a  period  of  planning  and  deliberation 
in  providing  ways  and  means,  in  first  taking 
care  of  the  essentials,  the  things  vital  and  neces- 
sary to  be  done  with  the  least  possible  delay, 
in  the  most  economical  way. 

In  doing  this,  attended  as  it  will  be  for  several 
years  to  come  with  unusual  taxation,  the  effects 
of  which  will  be  felt  more  later  on,  will  neces- 
sarily retard  the  broader  plans  and  delay  the 
luxuries  of  municipal  greatness  which  is  bound 
to  be  our  portion,  sooner  or  later,  when  a  more 
stable  and  normal  status  is  reached. 


VI 
LEGISLATIVE   ENACTMENTS 


The  state  should  vigilantly  guard 
against  combination  in  prices  and  all  legis- 
lation that  will  directly  or  indirectly  retard 
building  construction  during  the  recon- 
struction period.  Fads  and  innovations 
should  be  dismissed  until  industrial  activity 
is  resumed.  The  disposition  now  prev- 
alent, to  increase  and  add  taxation  on  real 
estate,  should  not  go  so  far  as  to  become 
a  menace  and  "kill  the  goose  that  is  laying 
the  golden  egg."  Nothing  should  be  struck 
while  it  is  down,  unless  you  wish  to  keep 
it  down.  There  will  always  be  a  time  and 
place  for  the  other  things ;  but  there  is  only 
one  time  for  this  thing,  and  that  is  now: 
— Municipal  Problems,  1919. 


LEGISLATIVE    ENACTMENTS 

We  now  turn  our  attention  to  legislative  en- 
actments to  correct  abuses,  and  to  constructive 
legislation  to  stimulate  the  building  industry. 

One  of  the  questions  that  is  now  engaging  the 
public  attention  is  rental  legislation,  a  very 
proper  subject  for  consideration  here  in  its  pos- 
sible effects  on  building  construction. 

The  question  of  placing  a  statewide  law  into 
effect  to  remedy  an  abnormal  local  condition, 
in  certain  parts  of  the  state,  should  be  thor- 
oughly analyzed  and  determined  what  the  gen- 
eral effect  will  be  over  the  entire  territory 
prescribed  by  the  law  upon  building  construc- 
tion, and  whether  or  not  local  remedies  may 
be  applied  that  will  successfully  deal  with  a 
situation  more  or  less  temporary. 

The  natural  tendency  of  any  legislation  gov- 
erning profits  is  to  create  a  reduction  in  supply. 

Arbitrary  limitations  of  the  possibilities  of 
an  enterprise  also  limits  its  production  and 
expansion. 

The  natural  tendency  of  human  nature  is  to 
do  something  wherever  the  elements  of  chance 
are  involved,  and  where  the  possibility  of  a  big 
profit  is  in  sight  and  unusually  good. 

63 


64        The  Destiny  of  the  American  City 

Withdrawing  any  commodity  from  the  effects 
of  law  of  supply  and  demand,  placing  it  within 
fixed  limitations,  takes  away  that  element  of 
chance  which  oftentimes  influences  one  to  act, 
whereas  otherwise  he  would  not. 

Nothing  should  be  done  that  will  react  and 
require  another  remedy  to  correct. 

A  possible  gain  in  one  direction  should  not 
entail  a  possible  loss  in  another. 

Experience  has  exploded  quite  a  number  of 
economic  theories  within  the  last  two  and  three 
years. 

The  conditions  are  still  ripe  for  more  theories 
and  more  explosions. 

It  is  impossible  to  force  or  encourage  capital 
into  a  high  market  and  limit  its  possibilities  to 
a  low  market  basis. 

Conditions  are  still  abnormal  and  as  a  con- 
sequence the  individual  is  becoming  so  in  his 
impatience  to  correct  and  return  to  his  original 
moorings. 

Impatience  and  too  many  short  cut  routes  in 
making  the  return  is  liable  to  react  and  some- 
what lengthen  the  road. 

Building  at  no  time  has  been  a  very  profitable 
investment  for  the  original  builder,  as  many 
have  imagined. 

There  is  an  old  and  trite  saying  that  "fools 
build  fine  houses  and  wise  men  live  in  them." 
The  wise  men  usually  wait  for  the  other  fellow 
to  build. 


Legislative  Enactments  65 

The  man  who  built  before  the  war  and  held 
until  now  is  the  exception,  but  the  man  who 
builds  now  may  be  decidedly  within  the  rule. 

Is  it  strange  that  the  builder  is  becoming 
weary  and  reaching  out  for  other  lines  of  invest- 
ment less  hazardous? 

If  the  builders  of  the  past  are  leaving  us,  to 
whom  shall  we  look  for  relief? 

Shall  we  finally  become  a  nation  of  wise  men, 
patiently  awaiting  the  birth  of  other  fools  to 
build?  * 

An  example  of  what  may  be  done  in  the  way 
of  constructive  legislation  to  aid  the  building 
industry  in  the  state  of  Illinois,  is  one  that  will 
be  recommended  by  the  Illinois  Realtor  Asso- 
ciation as  the  surest  and  quickest  means  of 
relieving  the  housing  shortage. 

In  reviewing  a  report  made  by  Joseph  K.  Brit- 
tain,  chairman  of  the  building  and  finance  com- 
mittee of  the  "Own  Your  Home"  exposition,  we 
quote,  in  part,  the  following: 

"Investigation  by  our  committee  shows  that 
Illinois  is  the  only  state  in  the  union  whose  laws 
prohibit  corporations  from  holding  titles  to 
homes  and  engaging  in  real  estate  operations  in 
connection  with  home  building,"  said  Mr.  Brit- 
tain.  "This  antiquated  Illinois  law  necessitates 
the  financing  of  home-building  projects  by  in- 
dividuals, few  of  whom  have  the  necessary 
capital  or  experience.    They  must  undertake  to 


66        The  Destiny  of  the  American  City 

build  under  conditions  which  result  in  high 
initial  payments  on  the  part  of  the  home  buyer 
and  high  installment  payments  over  a  period  of 
years. 

"A  corporation  with  large  financial  backing 
can  build  on  a  scale  impossible  for  the  indi- 
vidual, and,  by  reason  of  its  large  operations, 
can  build  better  and  more  economically  and  can 
sell  its  finished  product  on  easier  terms." 


VII 
CONTRIBUTING  FACTORS 


The  source  of  political  power  is  more 
and  more  to  be  found  in  our  cities.  And 
there,  also,  in  an  awakened  feeling  of  re- 
sponsibility with  regard  to  matters  which 
directly  concern  the  lives  of  the  citizens, 
may  be  found  the  needed  purifying  force. 

— Hughes. 


CONTRIBUTING  FACTORS* 

It  may  not  be  amiss  to  call  attention  to  a  few 
contributing  factors  causing  stagnation,  already 
classified  under  the  general  heading  "The  High 
Cost  of  Labor  and  Material,"  but  more  in  detail 
showing  the  contributing  elements  which  go  to 
make  up  some  of  the  items  of  this  already  over- 
burdened account. 

It  is  not  the  intention  to  pick  out  one  con- 
tributing factor  for  the  purpose  of  doing  an  in- 
justice to  any  particular  class  by  pushing  the 
burden  from  one  shoulder  to  another. 

We  feel  all  should  share  alike  in  the  treat- 
ment of  the  whole  subject  matter.  But  it  can 
not  be  denied,  that  one  of  the  most  discourag- 
ing items  the  individual  has  to  contend  with 
when  he  undertakes  to  figure  on  building  con- 
struction, is  when  he  reaches  the  plumbing  end 
of  it. 

This  we  find  not  only  in  the  initial  cost  of 
installation,  but  in  the  general  upkeep,  sur- 
rounded as  this  industry  seems  to  be  with  arbi- 
trary rules  and  methods,  making  this  item  a 
very  important  one  to  consider  in  the  general 
discussion  of  this  most  important  subject,  and 
one  that  should  not  be  casually  or  lightly  passed 
over. 


'See  Preface. 

69 


70         The  Destiny  of  the  American  City 

The  indignation  of  a  plumbing  patron  is 
always  at  fever  heat  in  discussing  the  ingenious 
methods  and  devices  alleged  to  be  employed 
in  tacking  the  cost  on  to  a  particular  piece  of 
plumbing. 

This  we  find  to  be  so  general  and  unconfined 
to  any  particular  locality  as  to  become  pro- 
verbial, country- wide,  calling  forth  the  jokes 
and  gibes  of  the  humorist  and  satirist,  with  the 
public  looking  on,  tacitly  accepting  it  in  good 
natured  tolerance  and  apparent  indifference. 

While  it  is  true,  in  relating  and  in  retelling 
instances  of  this  kind,  many  exaggerations  creep 
in.  But  in  justice  to  the  plumbing  industry  and 
the  public  as  well,  during  this  trying  period  in 
which  a  conscientious  effort  is  being  made  to 
revive  a  prostrated  industry  so  essential  to  the 
general  welfare  of  the  whole  country,  these 
alleged  aggravations  become,  nevertheless,  of 
the  utmost  importance  and  should  not  be  over- 
looked in  the  general  discussion  and  investiga- 
tions now  being  made. 

It  has  been  suggested  that  each  locality  com- 
pile its  stock  of  jokes  and  experiences,  backed 
by  the  responsibility  of  the  authors,  and  give 
the  plumbers  a  fair  chance  to  meet  the  issue. 

There  are  a  great  many  who  contend  that  the 
distribution  of  plumbers  throughout  the  coun- 
try, with  an  apparent  limitation  as  to  the  supply 
given  or  assigned  a  community,  creates  a  short- 


Contributing  Factors  71 

age  of  help,  so  that  when  the  demand  increases 
plumbers  are  scarce,  which  makes  it  possible 
to  hold  to  a  higher  or  increased  wage,  and  a 
consequent  delay  and  shortage  of  production. 

This  condition  gives  the  impression  on  the 
part  of  a  few  that  the  restrictions  governing  the 
period  of  probation  and  apprenticeship  is  too 
long  and  exacting,  so  as  to  place  the  supply  of 
plumbers  somewhat  behind  the  constantly  grow- 
ing demand  for  help. 

A  builder  in  his  desperation  advances  the 
rather  startling  and  somewhat  impractical 
suggestion  that  each  community  adopt  some 
method  of  schooling  volunteers  in  the  plumb- 
ing trade. 

Germany,  it  is  said,  has  a  policy  of  training 
reserves  in  the  various  trades  at  all  times,  so 
that  the  same  may  be  used  in  case  of  a  con- 
tingency arising  threatening  the  curtailment  of 
necessary  production. 

These  conditions,  multiplying  so  fast  as  to 
become  the  general,  rather  than  the  special  rule, 
not  only  in  this  but  other  crafts,  forces  us  once 
more  to  ask  the  question,  "Will  it  be  necessary 
for  us  to  follow  European  precedents  in  order 
to  fulfill  the  destiny  of  the  American  city?" 


In  the  solution  of  economic  problems  now  con- 
fronting the  nation,  the"  disposition  to  protect  the 
issues  advanced  by  the  various  groups  and  organi- 
zations demanding  special  benefits,  without  regard 
to  possible  secondary  effects  on  the  nation  as  a 
whole,  is  a  grave  and  serious  mistake. 

This  nation  belongs  to  no  one  party,  group  or 
organization,  but  to  the  whole  American  people  and 
the  only  true  test  of  merit  for  the  advancement  of 
any  public  measure  is  in  the  proper  analysis  of  the 
effects  it  will  have  on  the  great  masses  of  people. 

Municipal  Problems. 


VIII 

A  GRADUAL  RECESSION  IN 
PRICES 


Building  construction  is  not  waiting  for  a  pre- 
war price  in  labor  and  material  so  much  as  it  is  a 
stability  in  prices.  When  a  permanent  schedule  of 
prices  is  established  there  will  not  be  much  hesi- 
tation on  the  part  of  the  builder  to  act. 

The  builder  knows  that  the  present  market  is 
the  highest  that  the  world  has  ever  known — a 
record-breaking  market.  He  also  knows  that  the 
market  will  not  go  much  higher.  Why?  Because 
the  point  has  been  reached  where  the  demand  has 
ceased  and  when  the  demand  ceases  the  market 
stops. 

The  builder  knows  that  the  market  will  not 
remain  stationary.  An  abnormal  market  that  re- 
mains stationary  is  a  dead  market,  and  he  reasons, 
it  must  bend  downward  to  the  point  of  ignition, 
that  is,  if  ignition  is  what  is  desired.  Increasing 
the  price  of  labor  and  material  after  it  reaches  the 
abnormal  point  where  the  market  becomes  in- 
active and  the  demand  ceases,  does  not  increase 
the  profits  of  either  the  material  man  or  the 
artisan,  for  the  reason  there  is  no  profit  to  divide. 
Increasing  the  prices  under  these  conditions,  no 
matter  how  many  points,  has  no  more  effect  than 
pouring  a  hundred  more  bullets  into  a  dead  mule, 
for  the  reason  "he  was  just  as  dead  the  first  time 
as  he  is  the  last  time." 

— Municipal  Problems,  1918. 


A  GRADUAL  RECESSION  IN 
PRICES 

It  is  generally  conceded  that  a  gradual  reces- 
sion in  prices  back  to  normalcy  will  cover  a 
period  of  several  years. 

The  principle  of  a  slow  and  gradual  decline 
in  prices,  from  a  higher  to  a  lower  market,  so 
that  no  one  will  suffer,  offers  very  little  en- 
couragement to  the  builder  at  the  present  time. 

It  may  operate  satisfactorily  in  merchandis- 
ing, but  offers  no  inducement  in  building. 

For  instance,  a  manufacturer  makes  and  sells 
a  suit  of  clothes  in  a  high  market.  The  pur- 
chaser wears  it  out  in  the  same  market  and  no 
one  is  damaged  by  the  transaction,  for  the  rea- 
son it  is  made,  bought,  sold  and  worn  out  all  in 
the  same  market. 

On  the  other  hand,  the  builder  starts  a  build- 
ing in  a  high  market  and  by  the  time  he  com- 
pletes it,  finds  himself  in  a  lower  market  and 
by  the  time  he  sells  it,  in  a  still  lower  market. 

The  purchaser's  aim  is  to  buy  the  building 
so  he  will  be  protected  against  a  possible  loss 
in  a  future  declining  market. 

So  we  find,  unlike  merchandising,  it  is  im- 
possible to  build,  sell  and  wear  out  a  building 

75 


76         The  Destiny  of  the  American  City 

all  in  the  same  market  so  as  to  avoid  deprecia- 
tion. 

A  building  is  built  for  permanency  and  when 
constructed  in  the  highest  market,  it  is  in- 
evitable that  somebody  at  different  periods  in 
the  future  will  be  buying  and  selling  it  in  a 
lower  market. 

The  difference  in  this  regard  is  the  manu- 
facturer produces  for  temporary  use  and  con- 
sumption, while  the  builder  builds  for  perma- 
nency and  the  ages. 

We  are  now  confronted  with  the  question: 
How  are  we  going  to  satisfy  the  builder  that 
the  market  is  a  stable  one  and  how  are  we  going 
to  prove  to  him  that  the  market  has  no  false 
bottom? 

A  great  many  people  were  of  the  opinion  that 
an  unseen  power,  located  no  one  seemed  to 
know  exactly  where,  had  perfect  control  of  a 
lever  that  would  gradually  let  the  market  drop 
so  lightly  and  so  gently  that  no  one  could  pos- 
sibly be  seriously  injured. 

The  idea  was  such  a  pleasant  one  to  contem- 
plate, so  optimistic  in  its  psychology,  that  a 
great  many  accepted  it  as  a  fundamental  prin- 
ciple and  would  still  be  accepting  it  if  the  in- 
visible power  at  the  lever  had  not  let  it  slip  a 
cog,  permitting  the  law  of  supply  and  demand 
to  operate  with  full  force  and  effect  on  the 
farmer,  dropping  him  clear  through  without 
even  one  single  stop-over. 


IX 
FEDERAL  SUBSIDIES 


Governmental  fiat  and  decree  can  not 
force  capital  to  invest,  or  compel  labor  to 
work.  The  element  of  force  must  be  elim- 
inated from  capital  as  well  as  from  labor. 
Capital  can  not  be  forced  into  a  high 
market  upon  the  plea  that  stagnation, 
chaos  and  industrial  inactivity  will  result. 

The  natural  law  of  supply  and  demand 
must  be  permitted  to  play  its  important 
part,  and  the  reconciliation  of  labor  and 
capital  to  this  fundamental  principle  is  the 
part  we  have  to  solve.  There  is  no  doubt 
in  the  minds  of  the  American  people  that 
this  problem  will  be  solved,  and  solved 
right,  in  the  good  old  American  way,  with 
the  best  weapons  the  world  has  ever  known, 
the  American  weapons,  JUSTICE,  FAIR 
PLAY  AND  A  SQUARE  DEAL. 

— Municipal  Problems,  1919. 


FEDERAL  SUBSIDIES* 

The  question  is  being  asked,  is  the  United 
States  facing  the  necessity  of  subsidizing  hous- 
ing construction  on  the  European  plan  to  relieve 
the  present  stagnation? 

Is  the  country  approaching  a  condition  which 
will  mean  the  "adoption  of  European  precedents 
born  of  the  paternalism  of  monarchies"  in  ful- 
filling the  destiny  of  the  American  city? 

If  it  does,  will  it  go  too  far  in  satisfying  every 
demand  and  be  applied  to  every  class? 

Will  we  eventually  become  a  nation  so  accus- 
tomed to  subsidies  as  to  wait  patiently  for  an 
assignment  of  our  particular  brand? 

Will  the  building  industry  under  these  con- 
ditions, like  the  railroad  experiment,  create  a 
condition  that  now  requires  a  remedy  to  cor- 
rect? 

Will  labor  have  to  be  subsidized  to  work  and 
material  men  subsidized  to  furnish? 

Will  a  building  program,  controlled  by  the 
government,  destroy  the  initiative  of  the  in- 
dividual by  placing  him  in  competition  with  a 
subsidized  competitor? 

Will  the  same  economies  enter  into  building 
construction  as  the  individual  builder  employs 
in  working  out  a  reasonably  priced  product? 

*See  Preface. 

79 


80        The  Destiny  of  the  American  City 

Will  the  carpenter  and  plumber  drop  down, 
smoothly  and  automatically,  from  a  subsidized 
period  to  a  non-subsidized  period  without  a  jolt 
or  a  jar? 

After  doing  all  this,  where  will  the  govern- 
ment let  go  and  where  will  the  other  fellow 
catch  on? 

Or  will  the  federal  government  use  its  good 
offices  in  following  a  plan  that  will  inspire  the 
individual  to  build,  capital  to  invest,  labor  to 
work,  material  men  to  furnish,  civic  bodies, 
construction  interests,  and  industrial  leaders 
to  co-operate?    If  so,  all  well  and  good. 

No  doubt  federal  aid,  as  already  suggested, 
in  remitting  taxes  for  a  certain  period  in  new 
construction  work  as  a  means  of  encouraging 
capital  to  flow  towards  the  building  industry, 
will  contribute  something  in  that  direction. 
Still  the  one  big  thing  the  federal  government 
must  do,  and  one  which  overshadows  every 
other  question  at  the  present  time,  is  the  speedy 
solution  of  the  transportation  problem. 


X 

TRANSPORTATION  PROBLEMS 


In  the  construction  of  public  improvements  it 
is  found  that  the  high  cost  of  material  is,  in  a 
measure,  due  to  high  freight  rates,  established  by 
the  government. 

The  freight  rate  on  gravel,  which  enters  largely 
into  road-making,  to  a  city,  is  92  per  cent  higher 
than  it  was  two  years  ago.  Ever  since  the  armis- 
tice was  signed  the  call  by  the  government  to  build 
has  been  incessant  and  almost  mandatory. 

It  must  be  remembered  that  the  government 
took  the  market  away  from  the  builder  in  the  first 
instance,  and  its  obligations  to  return  it  in  as  good 
condition  as  possible  is  obvious. 

The  problems  for  thought  and  intensive  study 
are,  to  what  extent  the  federal  and  state  govern- 
ment can  go  in  giving  first  aid  to  the  building 
industry. 

To  what  extent  freight  rates  may  be  reduced, 
so  as  to  get  the  material  on  the  building  site  as 
cheaply  as  possible. 

To  solve  the  problem  of  reducing,  to  the  mini- 
mum, the  competition  between  the  builder  and  the 
government  in  the  purchase  of  building  material. 

To  investigate  and  ascertain  how  much  build- 
ing material  is  held  in  storage  throughout  the  coun- 
try, withheld  from  the  building  industry,  and  how 
it  can  be  immediately  released  and  placed  in  the 
hands  of  the  builder,  free  from  all  artificial  prices. 
— Municipal  Problems,  1919. 


TRANSPORTATION  PROBLEMS 

The  building  industry,  more  than  any  other, 
suffers  from  high  transportation  charges  on 
account  of  the  bulky  character  of  the  shipments 
and  the  great  distances  building  material  must 
be  transported  before  it  can  be  assembled  on 
the  building  site. 

We  can  easily  see  what  the  direct  benefit 
would  be,  in  obtaining  reasonable  freight  rates 
for  the  building  industry  in  the  transportation 
of  material,  as  well  as  the  indirect  benefit  re- 
ceived in  reducing  the  high  cost  of  living,  plac- 
ing the  artisan  in  better  position  to  offer  his 
services,  in  building  construction,  at  a  much 
lower  wage. 

Economical  distribution  in  a  country  so  vast 
and  large  as  our  own,  with  such  a  diversity  of 
raw  material  and  production,  becomes  now  the 
all  absorbing  question. 

Reasonable  freight  rates  enable  the  farmer 
and  the  manufacturer  to  economically  distribute 
their  products  into  all  parts  of  the  country,  near 
and  remote,  so  that  one  section  now  raising 
corn  may  have  it  at  a  low  price  and  agricultural 
districts  may,  in  like  manner,  be  supplied  with 
lumber  from  remote  timber  sections  at  a  reason- 
able figure. 

83 


84        The  Destiny  of  the  American  City 

What  benefit  does  the  resident  of  a  distant 
city  derive  in  a  reduction  of  prices  by  the  farmer 
of  food  products,  if  the  cost  of  transportation 
equals  the  amount  of  this  reduction? 

Under  these  present  conditions  the  overhead, 
in  way  of  transportation  and  other  excessive 
charges  resulting  therefrom,  makes  no  appre- 
ciable deduction  in  the  cost  of  living,  even  with 
prices  low  at  the  producing  station. 

What  the  price  is  at  the  point  of  production 
has  no  relation  to  the  price  at  the  point  of  con- 
sumption. 

An  important  item  in  our  economic  program 
should  be  the  establishment  of  a  reciprocal  rela- 
tion between  all  sections  of  the  country,  so  that 
the  advantages  of  those  in  one  section  may  be 
enjoyed  by  those  in  another  at  the  minimum 
cost. 

Anything  that  brings  all  parts  of  the  country 
in  close  contact,  economically,  tends  towards 
the  prosperity  of  the  whole. 

The  stories  now  being  told,  some  in  a  humor- 
ous vein,  gives  one  a  little  better  conception  of 
the  deplorable  conditions  under  which  we  are 
now  laboring. 

Potatoes  in  a  potato  raising  section,  when  the 
local  supply  is  greater  than  the  demand,  it  is 
said,  are  thrown  away  because  they  cost  too 
much  to  ship  to  a  distant  city  where  potatoes 
are  in  demand. 


Transportation  Problems  85 

It  is  also  told  that  in  a  certain  eastern  city 
it  costs  more  to  transport  products  around  the 
loop  in  the  city  than  it  does  to  ship  the  same 
amount  from  this  country  to  Europe. 

A  farmer  shipping  hogs  to  a  distant  market 
was  informed  by  wire  that  the  proceeds  from 
the  sale  of  hogs  was  not  sufficient  to  pay  the 
freight.  The  farmer  wired  back,  if  party  at 
other  end  would  pay  the  freight,  he  would  fur- 
nish him  enough  hogs  to  make  up  the  shortage. 
A  true  story,  however,  of  recent  date  clipped 
from  a  central  Illinois  paper  reads  as  follows: 

"Why  is  lumber  high?" 

Ask  Bob  Huff. 

By  a  simple  little  process  in  subtraction  he 
can  show  you  how  a  shipment  of  lumber  that 
costs  S.  E.  Huff  &  Go.  $780  actually  contained 
but  $180.82  worth  of  material. 

Invoice,  $780,  minus  freight,  $599.18,  leaves 
lumber,  $180.82. 

"And  then,"  says  Bob,  "people  wonder  why 
it  costs  so  much  to  build." 

Railroad  Publicity 

Probably  there  are  no  economic  problems 
quite  so  baffling  to  the  average  individual  as 
those  arising  out  of  railroad  questions,  involv- 
ing as  it  does  the  all  important  item  of  trans- 
portation with  which  little  can  be  done  in  the 
way  of  bringing  the  nation  up  to  its  maximum 
industrial  activity  until  properly  settled. 


86        The  Destiny  of  the  American  City 

This  question  has  now  reached  a  point  where 
the  concentration  of  all  minds  must  rest,  regard- 
less of  political  affiliations,  special  interests  or 
any  other  element  that  may  enter  into  it,  in  the 
earnest  endeavor  to  provide  some  sane,  effective 
and  definite  method  of  solution. 

This  confusion,  on  the  part  of  the  public,  is 
intensified  by  contradictory  viewpoints,  taken 
by  the  trinity,  labor,  railroad  management  and 
government,  whenever  an  issue  arises  for  dis- 
cussion. 

A  statement  one  day  from  railroad  executives 
contends  that  the  high  freight  rates  are  charged 
in  order  to  pay  the  increased  wage  of  labor.  On 
the  following  day  the  public  reads  that  labor 
has  retaliated,  taking  the  position  that  the  rail- 
roads have  to  charge  the  rate  in  order  to  pay 
the  dividends  on  inflated  stock,  and  that  manu- 
facturers and  all  classes  of  shippers  and  con- 
sumers must  continue  to  contribute  in  form  of 
rates  based  on  highly  inflated  valuations  of 
approximately  nineteen  billion  dollars,  thereby 
operating  a  practical  embargo  on  many  products 
of  industry  and  farm. 

The  public  reads  again  that  labor  has  scored 
a  great  victory,  and  in  another  column  of  the 
same  issue  it  is  shown  that  the  controversy 
between  labor  and  railroad  executives  has  re- 
sulted in  a  victory  for  the  railroads.  Surely  a 
strange  anomaly  when  two  contestants  in  a  con- 
troversy are  both  claiming  successful  victory. 


Transportation  Problems  87 

In  this  world  of  strife,  in  order  to  be  vic- 
torious, somebody  must  lose.  It  is  an  invariable 
law  of  conquest  that  "to  the  victor  belongs  the 
spoils." 

If  both  labor  and  railroad  management,  in  a 
conflict  between  themselves,  show  a  victory  for 
both  sides,  it  is  obvious  that  someone  must  lose 
and  that  someone  can  be  no  other  than  the  un- 
suspecting public,  apathetic  and  indifferent. 

Thus,  to  continue  indefinitely  until  the  people 
become  aroused  and  the  apathy  and  indifference 
finally  converted  into  a  more  intelligent  under- 
standing of  the  railroad  problem  and  its  great 
importance  to  the  continued  and  uninterrupted 
prosperity  of  the  nation. 

Again,  we  find  along  the  same  line  one  polit- 
ical group  advocating  the  repeal  of  the  Cum- 
mins-Esch  transportation  act  under  which  the 
railroad  systems  were  turned  back  to  their 
owners  in  order  to  crush  what  is  called  the 
Wall  Street  iniquity,  while  another  group  con- 
tradicts the  statement,  contending  that  Wall 
Street  would  like  nothing  better  than  repeal  of 
the  Gummins-Esch  act,  with  its  regulation  of 
security  issues;  this,  they  continue,  would  de- 
prive the  government  of  a  power,  won  after  a 
long  fight,  to  prevent  fictitious  capitalization  of 
railroads,  and  also  take  away  from  the  govern- 
ment effective  control  of  the  distribution  of 
freight  cars  and  prevent  the  co-ordination  of 


88         The  Destiny  of  the  American  City 

rail  and  water  lines,  all  of  which  leaves  it  an 
even  guess,  on  the  part  of  the  public,  which  one 
of  the  two  viewpoints  is  really  the  true  one  to 
follow  in  the  interest  of  public  policy. 

It  is  quite  clear,  however,  that  something 
should  be  done  to  bring  railroad  problems  down 
closer  to  the  understanding  of  the  people. 
Under  present  conditions  it  would  seem  that 
nothing  would  be  better,  if  it  were  possible,  to 
establish  a  bureau  of  information  and  research 
on  railroad  problems,  for  the  purpose  of  en- 
couraging constructive  criticism  similar  to  the 
one  on  municipal  problems,  as  outlined  in  an- 
other chapter,  gathering  up  and  analyzing  facts, 
independent  of  any  group,  faction  or  interest, 
other  than  the  interest  of  the  general  public. 

An  approach  to  this  idea  is  proposed  in 
recommendations  made  public  recently  by  the 
railroad  committee  of  the  Chamber  of  Com- 
merce of  the  United  States,  outlining  a  method 
for  bringing  the  public  interest  effectively  into 
every  railroad  question. 

It  is  proposed  to  create  a  new  agency  to 
develop  public  interest  and  to  represent  it  be- 
fore the  interstate  commerce  commission,  the 
railroad  labor  board,  or  any  other  body  con- 
sidering questions  in  the  field  of  interstate 
commerce.  Into  controversies  between  shippers 
and  railroads  and  between  employes  and  rail- 
roads this  agency  would  have  a  duty  to  bring 
in  considerations  of  general  public  policy. 


Transportation  Problems  89 

The  agency  proposed  takes  the  form  of  a  com- 
missioner general  of  transportation,  to  be  ap- 
pointed by  the  President  and  confirmed  by  the 
Senate.  Respecting  this  official  the  committee's 
recommendations  say: 

"The  commissioner  should  make  such  rec- 
ommendations to  all  governmental  agencies 
charged  with  the  regulation  of  interstate  trans- 
portation as  he  may  find  will  be  for  the  public 
interest  and  will  tend  to  co-ordinate  the  admin- 
istration of  the  laws  respecting  interstate  trans- 
portation by  land,  water  and  air  for  the  promo- 
tion and  development  of  a  national  system  of 
rail,  water,  highway,  and  aerial  transportation, 
and  make  possible  the  articulation  and  econom- 
ical use  of  all  transportation  facilities,  including 
tracks,  highways,  terminals,  transfer  facilities, 
docks,  and  landing  places.  The  commissioner 
should  make  an  annual  report. 

"The  commissioner  should  ascertain  and  re- 
port from  time  to  time  all  conflicting  or  inhar- 
monious functions  and  rulings  of  any  one  or 
more  boards,  commissions,  bureaus  or  other 
governmental  agencies  with  respect  to  interstate 
transportation  as  related  to  the  functions  and 
rulings  of  any  or  all  such  agencies  that  cannot 
be  so  reconciled  by  administrative  practices 
as  to  promote  the  general  development  of  a 
co-ordinated  system  of  interstate  transporta- 
tion." 


90        The  Destiny  of  the  American  City 
Complex  Railroad  Problems 

The  railroads,  on  the  other  hand,  do  not  hesi- 
tate to  remind  us  that  they  are  in  no  different 
position  from  other  industries  of  the  country. 

Like  many  producing  industries,  they  are  also 
confronted  with  a  sudden  and  violent  shrinkage 
of  business,  which  helps  to  make  the  selling 
price  of  what  is  produced  lower  than  the  cost 
of  production. 

They  contend  that  they  have  to  solve  these 
problems  in  the  same  way  as  the  manufacturer 
is  trying  to  solve  his,  by  bringing  the  cost  of 
material  and  the  cost  of  labor  in  line  with  the 
proceeds  from  what  they  have  to  sell. 

We  find  in  our  survey  many  complex  and 
important  railroad  problems  that  are  now  being 
offered  for  solution,  not  only  involving  legal 
and  moral  obligations,  but  also  involving  ques- 
tions of  public  policy,  requiring  a  broad-minded 
treatment.  All  of  which  it  is  hoped  they  will 
receive,  so  that  in  their  solution  they  will  be 
broadly  based  on  the  interest  of  the  whole  sys- 
tem of  national  transport  and  the  general  in- 
terest of  the  country,  combined  with  all  the 
equities  which  every  interest  involved  naturally 
deserves. 

Complex  questions,  such  as  the  railroad  re- 
funding arrangement,  more  or  less  open  as  it 
is  to  the  influences  of  powerful  centralized  in- 


Transportation  Problems  91 

terests,  becomes  one  of  the  most  delicate  and 
difficult  problems  now  offered  for  solution. 

Whether  to  halt  or  push  forward  legislation, 
now  pending,  to  pay  $500,000,000  of  government 
debt  to  railroads  before  the  railroads  have  paid 
what  they  owe  to  the  government  on  account 
of  war  time  government  operations  must  be 
solved,  and  when  solved  it  is  hoped  that  it  will 
be  in  the  interest  of  industrial  welfare. 

Questions  like  the  merger  of  American  rail- 
roads into  nineteen  great  competing  systems, 
in  order  to  strengthen  weak  lines  and  control 
waste,  proposed  by  the  Interstate  Commerce 
Commission,  now  under  serious  discussion, 
give  some  idea  of  the  stupendous  problems  that 
are  now  in  process  of  solution. 

From  a  report  by  Secretary  Hoover  of  the 
Department  of  Commerce  before  the  Interstate 
Commerce  Commission  recently,  we  quote  as 
follows : 

"For  the  last  five  years  we  have  had  no  con- 
sequential expansion  to  our  railroad  transpor- 
tation machine,  except  for  nine  months,  in  1918 
and  1919.  We  had  a  car  shortage  throughout 
1916-'17-'18-'20,  a  shortage  as  high  as  160,000 
cars." 

In  this  report  the  assertion  was  also  made  that 
the  experience  of  twenty  years  before  the  war 
has  shown  that  we  must  build  an  extension  of 
lines,   including   terminals,    additional   sidings, 


92        The  Destiny  of  the  American  City 

etc.,  every  year  equal  to  the  construction  of  a 
new  railroad  from  New  York  to  San  Francisco, 
and  add  at  least  120,000  cars  and  2,500  locomo- 
tives annually  to  rolling  stock. 

Yet  since  the  declaration  of  war  in  1917,  four 
years,  we  have  constructed  at  least  10,000  miles 
of  railroads  less  than  our  increase  of  population 
and  economic  development  called  for,  and  are 
behind  in  rolling  stock  about  400,000  locomo- 
tives and  200,000  cars. 

In  face  of  this  declaration  it  would  indicate 
that  with  any  substantial  increase  at  all  in  busi- 
ness revival,  the  failure  to  maintain  railroad 
equipment  in  line  with  increased  population 
and  economic  development  would  mean  a  short- 
age of  transportation  facilities  on  the  start,  with 
the  natural  tendency  of  keeping  up  freight  rates 
indefinitely,  sounding  a  death  knell  to  those 
anxious  to  see  substantial  freight  rate  reduc- 
tions on  basic  products,  so  essential  to  general 
industrial  activity. 

It  would  seem,  however,  that  such  extraordi- 
nary conditions,  under  which  industry  is  now 
laboring,  that  some  practical  and  feasible 
method  could  be  thought  out  by  which  a  rea- 
sonable freight  rate  might  be  conceded  to  basic 
products,  which  needs  only  this  one  special 
treatment  to  stimulate  and  throw  into  seething 
activity  one  or  more  of  the  great  industrial 
armies  of  the  nation. 


Transportation  Problems  93 

A  political  economist  makes  the  statement 
that  "there  are  three  keys  to  great  national 
prosperity,  one  held  in  the  hands  of  the  build- 
ing trades  and  the  other  two  in  the  hands  of 
the  railroad  and  coal  industries."  Why  say 
three  keys?  Why  not  forge  only  one  that  will 
open  all  three?  Interdependent  as  they  are,  a 
key  that  would  open  one  will  not  work  until 
another  is  opened. 

Lumber  at  the  mill,  reduced  to  pre-war  prices, 
with  a  war  transportation  cost  tacked  on  by  the 
railroads  on  its  delivery  at  the  building  site, 
offers  very  little  encouragement  for  the  maxi- 
mum prosperity  that  the  nation  is  now  seeking. 

Freight  Rates  and  Living  Costs 

The  endeavor  to  minimize  the  effects  of  enor- 
mous freight  rates  on  the  average  family  now 
being  made,  in  order  to  show  that  it  has  little 
or  nothing  to  do  with  the  high  cost  of  living, 
does  not  appeal  to  the  discerning  individual  who 
is  able  to  figure,  not  only  the  direct  but  also 
the  indirect  cost  of  enormous  freight  rates  that 
one  is  compelled  to  pay,  showing  quite  con- 
clusively to  even  the  most  casual  observer  that 
present  rates  charged  are  an  intolerable  burden 
for  the  great  mass  of  people. 

The  effect  of  freight  rates  on  living  costs  are 
in  direct  proportion  to  the  amount  of  expendi- 
ture. The  greater  the  expenditure  the  greater 
the  effect. 


94        The  Destiny  of  the  American  City 

It  cannot  be  denied,  however,  that  the  aver- 
age family  throughout  the  United  States  pays 
billions  of  dollars  for  freight  rates,  covered  up 
and  concealed  in  cost  of  soft  and  hard  coal,  gas 
and  electric  light  provided  by  fuel;  clothes, 
foodstuff,  building  material  and  everything  that 
goes  to  make  up  the  wants  and  the  necessity  of 
every  individual  and  family  throughout  the 
land. 

The  public,  for  these  reasons,  is  now  begin- 
ning to  persistently  ask  many  questions.  It 
wants  to  know  how  much  of  the  annual  earn- 
ings of  the  United  States  are  going  into  the 
coffers  of  the  railroads.  The  poor  man  who 
buys  the  coal  wants  to  know  what  proportion 
of  the  price  he  pays  is  absorbed  for  transporta- 
tion. The  builder  is  trying  to  find  out,  when  he 
builds,  how  much  he  must  contribute  to  the  rail- 
road before  he  can  get  his  material  placed  on 
the  building  site.  The  farmer  is  endeavoring  to 
find  out,  when  he  ships  three  or  four  cars  of 
grain,  cattle  or  hogs  to  the  market,  how  many 
cars  must  the  railroad  take  before  the  railroad 
delivers  the  balance  to  the  purchaser.  He  de- 
sires to  know  what  plan  the  government  has  in 
view  for  stabilizing  the  railroad  rates,  so  that 
not  only  labor  and  management  receives  a 
square  deal,  but  also  how  soon  the  public  is 
going  to  be  placed  back  into  possession  of  its 
own. 


Transportation  Problems  95 

Freight  Costs  on  Basic  Commodities 

In  further  verification  of  the  statement  that 
freight  costs  is  one  of  the  greatest  of  all  our 
economic  problems,  attention  is  called  to  the 
recent  announcement  that  radium  has  been 
materially  reduced  in  price  owing  to  the  reduc- 
tion in  freight  rates. 

The  question  naturally  arises,  what  relation 
have  freight  rates  to  the  cost  of  radium,  so  ex- 
tremely valuable  in  proportion  to  its  weight? 

When  one  stops  to  consider  that  it  takes  250 
tons  of  Colorado  ore  to  produce  one  gram  of 
radium,  which  has  to  be  shipped  east  to  be  re- 
fined, the  relation  of  price  to  weight  is  very 
easily  understood. 

We  find  the  same  handicap  to  industrial 
activity  attached  to  all  basic  products  of  great 
bulk.  ' 

It  is  seen  in  three  basic  commodities,  coal,  oil 
and  lumber. 

Coal,  a  mass  production,  very  heavy  in  pro- 
portion to  the  effective  heat  units  which  it  con- 
tains covered  with  excessive  freight  rates  under 
existing  schedules. 

Oil,  with  its  potential  possibilities  and  re- 
sources remaining  idle  on  account  of  expense  of 
handling  enormous  bulk  and  weight  of  shale, 
from  which  it  must  be  distilled. 

Lumber,  from  remote  regions  to  its  destina- 


96        The  Destiny  of  the  American  City 

tion  on  the  building  site,  covered  with  freight 
rates,  several  times  what  it  costs,  at  the  point 
of  production. 

Reasonable  freight  rates  on  basic  commodities 
are  essential  to  national  prosperity. 

Prosperity  will  ever  be  retarded  and  never 
reach  its  maximum,  until  the  absorption  of  the 
incomes  of  industry  in  excessive  freight  costs 
becomes  a  thing  of  the  past. 

Public  and  Private  Ownership 

The  argument  for  and  against  public  owner- 
ship of  railroads  seems  so  equally  balanced  as 
to  neutralize  any  active  effort  that  might  be 
made  to  carry  a  government  ownership  plan 
into  effect,  unless  it  is  brought  about  by  fruit- 
less efforts  to  reconcile  railroad  management 
and  labor,  thereby  making  it  imperative,  on  the 
part  of  the  government,  to  take  over  the  rail- 
roads on  the  grounds  of  public  safety  and  wel- 
fare. 

It  is  very  difficult  to  reconcile  the  mind  to  the 
thought  of  public  ownership  in  the  light  of  what 
is  known  of  the  inferiority  of  nationalized  trans- 
portation in  other  countries,  and  what  we  may 
expect  to  inherit  in  the  way  of  bureaucratic 
evils,  that  are  bound  to  be  a  part  and  parcel 
of  any  government  ownership  plan  that  may 
now  be  devised. 

On  the  other  hand,  under  private  ownership 


Transportation  Problems  97 

we  are  also  confronted  with  many  complica- 
tions and  serious  difficulties.  If  it  is  to  be  pri- 
vate ownership  without  regulations,  as  in  the 
past,  there  are  three  things  which  we  know  to 
be  intolerable,  viz.:  the  rebate  evil,  bad  financ- 
ing and  manipulation  of  stock  issues  resulting 
in  monopoly,  imposition  of  exorbitant  charges 
on  the  public,  absorption  of  undue  profits  and 
woeful  neglect  of  public  service. 

If  it  is  to  be  private  ownership  with  regula- 
tions, we  find  then,  those  who  protest  on  the 
grounds  of  restricting  freedom  of  action,  con- 
tending that  reducing  earnings  and  profits  to 
the  minimum,  fixing  passenger  and  freight  rates, 
regulating  payment  of  wages  and  limiting  rates 
of  earnings,  are  handicaps  that  retard  growth 
and  expansion  of  railroads,  preventing  them 
from  attaining  the  high  points  of  business  effi- 
ciency that  attend  other  industrial  enterprises, 
with  more  freedom  of  action  unattended  by 
artificial  restrictions,  and  that  most  any  busi- 
ness enterprise  would  spell  dismal  failure  if 
surrounded  by  the  same  conditions  that  sur- 
round our  transportation  system,  lacking  as  it 
does  in  fundamental  business  principles,  so 
essential  to  successful  industrial  activity. 

At  any  rate,  under  private  ownership  with 
regulations  we  now  find  trouble  in  abundance 
in  the  attempt  to  settle  controversies  between 
management  and  labor,  with  the  public  suffer- 

7 


98        The  Destiny  of  the  American  City 

ing  from  lack  of  proper  transportation  facilities, 
shortage  of  coal,  higher  freight  rates  and  poor 
service. 

It  can  be  easily  understood,  if  the  railroads 
are  to  be  juggled  and  shuttlecocked  back  and 
forth  by  the  proponents  of  one  plan  or  another, 
in  order  to  gain  a  possible  advantage  or  ascen- 
dency, it  cannot  be  accompanied  without  posi- 
tive loss  and  waste  to  the  nation,  causing  more 
to  block  national  prosperity  than  any  other 
single  item  on  the  whole  calendar  of  misfits. 

If  we  are  to  enjoy  the  maximum  prosperity 
to  which  the  nation  is  entitled,  we  must  neces- 
sarily evolve  from  this  jumbled  mass  of  misfits 
and  inconsistencies  surrounding  our  transpor- 
tation problems  a  comprehensive  constructive 
policy,  conscientiously  followed,  that  will  make 
the  American  railroad  without  a  rival  in  the 
world  in  the  accomplishment  of  three  essen- 
tials, namely,  efficiency,  service  and  reasonable 
charges.  The  one  who  is  able  to  formulate  such 
a  policy,  carried  through  to  successful  comple- 
tion, will  have  earned  enduring  fame,  conferring 
on  the  nation  a  very  great  service;  a  life's 
achievement  worthy  of  a  supreme  effort. 

There  is  one  thing  certain,  however,  if  any- 
thing is  to  be  accomplished  with  the  railroads 
through  government  legislation,  the  practices 
of  making  railroad  issues  a  political  jack-pot 
for  office  seekers,  using  catchy  abstractions  of 


Transportation  Problems  99 

the  railroad  problems  more  or  less  attractive 
to  an  uninformed  constituency  to  ride  into 
power,  must  be  discontinued  and  instead  a  con- 
structive policy  substituted,  covering  all  prob- 
lems, one  that  will  assure  and  satisfy  the  public, 
that  the  railroad  problems  are  safely  on  the 
road  to  a  permanent  solution. 

In  the  formation  of  a  foundation  upon  which 
a  constructive  policy  is  to  be  built,  the  deck 
should  be  cleared  for  action,  and  a  few  of  the 
old  "sore  spots"  that  have  throttled  every  effort 
to  deal  satisfactorily  with  the  situation  should 
be  in  some  way  healed  or  at  least  buried  and 
forgotten,  as  part  and  parcel  of  a  very  bitter 
and  repentant  past. 

In  our  analysis  we  shall  refer  to  only  a  few 
items  to  which  this  healing  potion  should  be 
applied.  There  are  no  two  things  quite  so 
prejudicial  to  the  present  status  of  the  transpor- 
tation problem  in  the  mind  of  the  average  in- 
dividual, whenever  their  solution  becomes  an 
issue,  as  the  one  involving  the  government's 
guaranty  of  railroad  investments,  based  upon 
an  amount  alleged  to  be  far  in  excess  of  the 
physical  valuation  of  railroad  equipment. 

It  is  difficult  for  the  farmer  and  others  to 
figure  out  if  it  is  possible  for  the  government 
to  aid  the  railroads  under  a  guaranteed  profit 
plan.  Why  is  it  not  also  possible  to  help  a  basic 
industry,  such  as  agriculture,  in  the  same  man- 


100      The  Destiny  of  the  American  City 

ner.  Also,  if  it  is  possible  to  place  a  valuation 
upon  railroad  property,  as  a  basis  of  computa- 
tion, satisfactory  to  the  owner,  why  is  it  not  also 
possible  to  place  a  valuation  on  agricultural 
equipment  satisfactory  to  the  owner  for  the 
same  purpose? 

These  are  the  questions  that  naturally  arise, 
under  conditions  such  as  this,  making  the  posi- 
tion of  the  government  in  this  regard,  in  the 
minds  of  the  people,  more  or  less  questionable 
and  which  may  need  only  proper  elucidation  to 
clear  up  the  public  mind  as  to  its  wisdom  or  its 
fallacy. 

It  is  obvious*  in  formulating  a  constructive 
policy  under  private  ownership,  the  manner  in 
which  labor  is  to  be  treated  will  be  the  greatest 
factor  upon  which  the  mind  must  center. 

Railroad  labor,  by  virtue  of  its  calling,  should 
rest  on  a  scientific  basis  and  upon  a  very  high 
standard  of  efficiency. 

Labor  in  a  quasi-public  industry  like  rail- 
roading, must  guarantee  service  to  the  pub- 
lic, which  must  be  continuous,  uniform  and 
uninterrupted. 

To  obtain  this  standard  of  efficiency  and  to 
encourage  the  proper  initiative  for  its  accom- 
plishment, it  may  not  only  be  necessary  but 
wise  to  give  not  only  a  wage  interest  to  labor,  but 
also  a  profit  interest.  A  selective  labor  group, 
selected  on  the  basis  of  a  high  standard  of  effi- 


Transportation  Problems  101 

ciency  fully  qualifying  for  both,  a  wage  and  a 
profit  interest,  should  bring  out  the  very  best 
there  is  in  labor,  both  physically  and  mentally. 

With  a  selective  group  of  railroad  manage- 
ment, combined  with  a  selective  group  of  rail- 
road labor,  eliminating  the  inefficient  as  well 
as  the  many  evils  hibernating  in  both  camps, 
controlled  and  regulated  by  wise  legislative 
enactments,  is  a  Utopian  dream  extremely  diffi- 
cult to  visualize  at  the  present  time,  but  which 
is  worthy  of  at  least  a  passing  thought  in  our 
final  analysis,  and  for  which  we  should  be  for- 
given if  human-like  we  reach  out  for  what  may 
be  the  impossible  and  unattainable. 

As  it  now  stands  from  all  the  difficulties  that 
surround  the  transportation  problem,  the  public 
is  unable  to  gather  much  encouragement  other 
than  something  in  the  way  of  a  temporary  solu- 
tion, as  nothing  permanent  seems  possible  to  be 
accomplished  at  the  present  time. 

The  public  must  have  transportation,  it  must 
also  have  coal,  two  essential  things  that  the  gov- 
ernment in  its  duty  and  power  must  see  is  given 
to  the  people  on  the  grounds  of  public  safety 
and  welfare. 

The  government  in  doing  this,  to  meet  an 
emergency,  may  do  it  as  an  expedient  to  tide 
over  difficulties  temporarily,  without  a  satisfac- 
tory solution  of  any  fundamental  principles 
involved,  leaving  this  problem  for  a  future  day 
to  solve. 


102      The  Destiny  of  the  American  City 

Railroads  are  the  great  industrial  arteries  of 
the  nation.  The  human  body  is  unable  to  func- 
tion if  the  arteries  are  diseased  and  blocked, 
neither  is  the  nation's  vitality  at  par  when  the 
arteries  of  commerce  are  in  process  of  decay. 

In  primitive  times  communities  were  inde- 
pendent of  each  other.  They  were  able  to  chop 
their  own  wood  for  fuel  and  kill  their  own  game 
for  food,  but  in  these  days  of  highly  centralized 
city  dwelling  and  specializing,  where  the  munic- 
ipality is  compelled  to  draw  its  sustenance  from 
the  outside,  makes  the  question  of  proper  con- 
tact in  the  exchange  of  commodities  between 
the  city  and  the  country,  for  the  enjoyment  and 
comfort  of  both,  an  economic  necessity. 

Intelligent  Americans  are  beginning  to  find 
out  that  the  destiny  of  the  American  city  hinges 
more  and  more  upon  the  efficiency  of  our  system 
of  national  transport  than  any  other  one  factor, 
and  that  all  questions  bearing  upon  the  prob- 
lems are  extremely  important  for  their  most 
careful  and  deliberate  consideration  as  one 
directly  affecting  the  prosperity  of  the  whole 
American  people. 

The  Railroads  and  the  Farmer 

When  it  comes  to  profligate  waste,  one  that 
in  dollars  and  cents  reaches  into  the  millions, 
saying  nothing  about  the  waste  in  human  wealth, 
there  is  nothing  that  approaches  in  magnitude 


Transportation  Problems  103 

the  loss  to  the  nation  that  is  caused  by  excessive 
freight  rates  assessed  on  the  products  of  the 
farm  and  which  results  in  decay  and  waste  at 
the  producing  station,  for  the  lack  of  proper 
and  reasonable  transportation  to  near  and  re- 
mote parts. 

The  South  Bend  News-Times,  in  commenting 
on  this  condition  under  the  heading  of  what  it 
terms  "The  Greatest  Grime,"  says: 

"If  any  red  from  Russia  or  amateur  anarchist 
from  Boston  was  caught  burning  a  wheat  stack, 
dynamiting  a  pile  of  potatoes  or  spraying  trees 
with  a  chemical  which  would  destroy  fruit,  this 
nation  would  promptly  and  properly  apply  the 
most  drastic  punishment. 

"Today  millions  of  dollars  worth  of  fruit  are 
going  to  waste  because  the  cost  of  hauling  to 
market  is  greater  than  the  price  which  is  within 
the  reach  of  the  consumers. 

"In  every  large  city  of  this  country  there  are 
hundreds  of  children  to  whom  the  fruit  would 
be  a  life-saver.  They  will  not  taste  much  fruit 
this  year.  Some  of  them  will  not  have  any  per- 
sonal contact  with  peaches,  grapes,  apples  or 
melons. 

"Commission  houses  in  Chicago  admit  send- 
ing back  checks  for  a  dollar  for  a  carload  of 
fruit.  The  entire  value  is  wiped  out  in  trans- 
portation and  the  grower  is  driven  by  neces- 
sity to  either  take  a  loss  or  permit  his  crops  to 
rot  upon  the  fields  and  in  the  orchards. 

"The  situation  is  an  indictment  of  the  busi- 
ness ability  of  the  nation  as  a  whole.  The 
spectacle    of   crops    destroyed    in    one    section 


104      The  Destiny  of  the  American  City 

while  other  sections  of  the  country  need  and  de- 
mand them  as  food  is  its  own  commentary  on 
our  present  system  of  distribution. 

"The  great  crime  is  the  waste,  a  loss  not  only 
to  the  growers  of  the  nation,  but  to  the  health 
and  comfort  of  the  people. 

"There  are  limits  to  prices  which  the  con- 
sumer can  pay.  Those  limits  are  fixed  by  wages, 
by  the  value  of  other  products,  by  incomes. 
When  the  border  is  passed,  there  can  be  no  de- 
mand and  something  is  radically  wrong  when 
the  consuming  public  is  unable  to  pay  a  price 
that  will  make  it  possible  for  the  growers  of 
food  to  feed  that  public. 

"That  is  the  reason  a  farm  bloc  exists  in  Con- 
gress. It  was  brought  together  to  remedy  just 
such  a  condition.  It  represents  those  who  raise 
the  food  of  the  nation  and  the  members  know 
that  under  the  present  tendency  of  things,  the 
farmers  of  the  nation  will  soon  be  bankrupt 
while  the  industrial  workers  are  underfed. 

"Senator  Capper  of  Kansas,  leader  of  farm- 
ers, told  the  Senate  the  other  day  that  bran  of 
a  certain  kind,  which  costs  $23.00  per  ton  to 
produce,  finally  costs  the  consumer  $500.00. 

"Somewhere  between  the  farm  and  the  home 
the  border  line  of  value  is  passed.  The  farmer 
bloc  may  be  wrong  in  principle,  but  as  long  as 
fruit  rots  on  the  trees  while  city  dwellers  need 
it  to  tone  up  their  blood,  special  groups  that 
are  directly  interested  will  be  formed." 

One  of  the  biggest  factors  contributing  to  the 
low  price  of  farm  products  is  imperfect  and 
costly  distribution. 

Throughout    the    mid-west,    producing    the 


Transportation  Problems  105 

largest  share  of  the  food  supply  of  the  nation, 
we  find  a  most  deplorable  situation  in  com- 
parisons between  the  price  the  farmer  receives 
for  his  grain  and  what  he  has  to  pay  for  the 
finished  product. 

In  some  of  the  best  farming  land  in  the  world 
we  find  landowners  receiving  far  less  than  3 
per  cent  on  their  investment  and  many  com- 
pelled to  mortgage  farms  to  make  both  ends 
meet. 

This  condition  has  not  been  generally  under- 
stood and  its  importance  properly  appreciated. 
The  farmer  has  now  concluded  that  the  country 
shall  be  made  to  understand  it. 

To  cover  rent,  taxes  and  interest  something 
must  be  done  to  distribute  his  crops,  to  give 
him  a  stronger  price  and  to  furnish  him  a 
market. 

If  still  another  season  of  low  prices  follows 
the  two  he  has  already  had,  a  great  many  of 
them  will  be  forced  out  of  the  food  producing 
business. 

With  the  purchasing  power  of  the  farmer 
disappearing,  every  other  business  naturally 
suffers  in  consequence. 

Better  and  cheaper  transportation,  stronger 
prices,  and  more  outlets  for  American  surplus 
are  three  crying  demands  of  the  farmer.  Give 
him  the  first  demand  and  the  battle  for  the 
other  two  will  be  half  won. 


106      The  Destiny  of  the  American  City 

The  maximum  prosperity  to  which  the  nation 
is  entitled  will  never  be  attained,  with  what  the 
farmer  has  to  sell  far  below  the  pre-war  level, 
with  what  he  has  to  buy  so  far  above. 

The  economic  equilibrium  between  agricul- 
ture and  other  industries  has  been  destroyed — 
to  the  detriment  of  the  farmer. 

The  farmer  not  only  desires,  but  is  now  de- 
manding, reinstatement.  He  feels  that  this 
appeal  should  not  be  ignored  and  to  this  task 
the  best  statesmanship  of  the  land  should  be 
centered  to  give  the  necessary  relief  and  fore- 
stall irreparable  injury  to  the  nation. 

Basic  industries  like  agriculture  and  build- 
ing, the  first  aids  to  permanent  national  pros- 
perity, must  necessarily  have  this  consideration. 

This  is  what  statesmanship  is  for  and  where 
it  should  be  displayed — in  conscientious  en- 
deavor. 


XI 

SUB-NORMAL  EFFICIENCY  OF 
LABOR 


We  all  know  before  labor  can  be  employed 
something  must  be  produced,  therefore  the  first 
thing  to  consider  is  production.  After  production  a 
demand  for  the  thing  must  be  created;  then  in  or- 
der to  keep  labor  employed  and  the  industrial  ma- 
chinery running,  the  demand  must  keep  pace  with 
production. 

Executive  efficiency  in  production  enables  the 
producer  to  sell  at  a  reasonable  price.  Efficiency 
on  the  part  of  the  artisan  enables  the  producer  to 
pay  a  reasonable  wage  without  any  material  in- 
crease in  the  cost  of  the  product.  As  production 
increases,  with  a  consequent  increase  in  profit,  the 
producer  is  able  to  increase  the  wage  based  upon 
labor  efficiency.  It  must  be  remembered  that  this 
high  point  of  efficiency  on  the  part  of  the  producer 
and  the  artisan  can  not  be  attained  at  once,  emerg- 
ing as  we  are  from  a  stagnant  market,  hovering 
around  zero.  The  goal  must  be  reached  gradually, 
by  degrees,  and  a  start  made  at  a  point  that  will 
encourage  all  three  factors  to  co-ordinate  their 
efforts  in  putting  the  industrial  machinery  in 
motion.  Labor,  in  the  end,  will  be  forced  to  accept 
the  principle  that  efficiency  is  the  basis  of  all  wage 
increase.  In  the  business  world  the  principle  to 
give  something  for  nothing,  or  without  adequate 
compensation,  will  never  be  recognized.  This 
belongs  to  philanthropy. 

This  position  is  not  only  an  injustice  to  the 
other  factors,  but  also  to  the  hundred  per  cent  effi- 
cient artisan,  who  sees  that  the  reward  for  effici- 
ency is  no  greater  than  if  the  effort  had  never  been 
made. 

Without  some  substantial  appreciation  of  effi- 
ciency, in  both  mental  and  physical  endeavor, 
much  of  the  inspiration  dies  and  the  world  becomes 
the  loser.  — Municipal  Problems,  1918. 


SUB-NORMAL  EFFICIENCY  OF 
LABOR* 

On  the  subject  of  sub-normal  efficiency  of 
labor,  no  better  exposition  of  the  facts  have 
been  received  by  us  than  the  following  report 
shown  in  a  metropolitan  paper  which  is  given 
in  full. 

"With  some  3,500,000  men  out  of  employment 
in  the  United  States  at  the  present  time,  the  ordi- 
nary activities  of  labor  organizations  are  con- 
siderably altered.  Instead  of  devoting  their 
efforts  to  obtaining  higher  wages,  shorter  hours, 
and  better  working  conditions,  they  are  now 
fighting  to  retain  these  advantages  from  the  dis- 
integrating influence  of  idleness. 

"Obtaining  and  retaining  jobs  are  the  two 
chief  interests  of  the  individual  worker.  Such 
interests  emphasize  individualism  and  weaken 
unionism.  For  this  reason  in  present  conditions 
it  is  essential  that  organized  labor  takes  up  the 
task  of  putting  its  membership  into  jobs.  To 
do  so  it  must  first  analyze  the  conditions  which 
have  put  the  workers  out  of  jobs. 

"One  East  Chicago  factory  man  who  dismissed 
a  tenth  of  his  force  last  fall  found  production 
increased.    He  dismissed  another  tenth  with  the 


See  preface.  109 


110      The  Destiny  of  the  American  City 

same  result.  A  third  tenth  was  let  out  with 
similar  results.  No  more  positive  proof  could 
be  asked  that  the  original  force  has  been  doing 
less  than  seven-tenths  of  a  day's  work.  In  that 
way  they  had  been  adding  to  the  cost  of  their 
product  and  eventually  helped  to  bring  on  the 
reaction  and  the  buyer's  strike. 

"One  loop  building  contractor  found  his  brick- 
layers were  laying  twice  as  many  bricks  last 
November  as  in  November,  1919.  Fear  of  los- 
ing their  jobs  in  a  slack  period  made  them  do 
a  fair  day's  work.  When  they  had  been  doing 
half  a  day's  work  for  the  same  money  they  were 
adding  uselessly  to  the  cost  of  building,  thereby 
discouraging  construction  and  keeping  other 
building  craftsmen  and  eventually  themselves 
out  of  jobs.  Similar  instances  have  been  noted 
in  the  building  material  trades.  By  decreasing 
output  and  thereby  raising  costs  they  have 
helped  to  discourage  building  and  so  reduced 
the  demand  of  fellow  draftsmen." 

In  such  matters  as  the  so-called  "door  trust" 
in  Chicago,  the  workers  have  gone  even  farther. 
By  refusing  to  allow  the  use  of  any  millwork 
except  that  made  in  Chicago  union  shops  the 
workers,  in  combination  with  the  mill  men, 
helped  to  restrict  building  to  such  an  extent  that 
thousands  of  men,  both  union  and  non-union, 
were  deprived  of  employment.  Such  things 
weaken  the  whole  cause  of  organized  labor. 


Sub-Normal  Efficiency  of  Labor         111 

Sidney  Webb,  probably  the  leading  authority 
among  the  economists  on  the  subject  of  union 
labor,  and  distinctly  sympathetic  toward  union- 
ism, has  said  on  this  subject,  "In  the  painful 
'Pilgrim's  Progress'  of  democracy  the  workers 
will  be  constantly  tempted  into  bypaths  that 
lead  only  to  the  Slough  of  Despond.  It  is  not 
so  much  the  enticing  away  of  individuals  in 
the  open  pursuit  of  wealth  that  is  to  be  feared 
as  the  temptation  of  the  particular  trade  unions, 
or  the  particular  sections  of  the  workers,  to 
enter  into  alliances  with  associations  of  capi- 
talist employers  for  the  exploitation  of  the  con- 
sumer." 

This  is  practically  what  has  been  done  in  such 
combinations  as  the  "door  trust"  deal  in  Chi- 
cago and  in  the  blackmail  cases  of  New  York. 
They  are  dangerous  errors  in  organized  labor 
policy.  That  they  are  the  result  of  policy,  not 
ignorance,  is  the  assertion  of  no  less  an  authority 
and  student  of  the  subject  than  R.  F.  Hoxie, 
American  economist  and  author  of  "Trade 
Unionism  in  the  United  States."  On  this  point 
Mr.  Hoxie  says: 

"The  trade  union  program — or  rather  the 
trade  union  programs,  for  each  trade  union  has 
a  program  of  its  own — is  not  the  unrelated 
economic  demands  and  methods  which  it  is 
usually  conceived  to  be,  but  a  closely  integrated 
social  philosophy  and  plan  of  action It 


112      The  Destiny  of  the  American  City 

expresses  the  workers'  social  theory  and  the 
rules  of  the  game  to  which  they  are  committed, 
not  only  in  industry  but  in  social  affairs  gen- 
erally. 

"Union  labor  has  done  much  to  promote  the 
welfare  of  the  workingman.  It  has  also  done 
much  to  retard  his  welfare  and  to  throw  him 
out  of  employment  at  present.  If  it  wishes  to 
retain  the  advantages  it  should  eliminate  the 
evils." 


XII 
MORE  BUSINESS  IN  GOVERNMENT 


'However,  an  analysis  of  the  expendi- 
tures of  this  government  over  and  above 
the  expenditures  due  to  wars,  present,  past, 
or  future,  has  inordinately  increased.  I 
am  not  here  to  take  a  partisan  advantage 
or  to  make  a  partisan  appeal,  for  this  is  not 
due  entirely  to  the  direction  of  the  party 
in  power.  It  is  due  to  a  persistent  growth 
of  the  bureaucratic  control,  the  interest  of 
the  personnel  of  departments  and  of  com- 
missions and  of  boards  and  of  bureaus  and 
of  every  other  agency  ever  utilized  or  ever 
abused  by  a  paternalistic  regime. 

There  is  more  power  exercised  today  in 
these  marble  sarcophagi  by  unknown  ex- 
perts, the  politically  controlled  appointee  of 
whispering  propaganda,  than  by  the  courts 
themselves.  The  cost  has  become  unbear- 
able. It  has  been  said  that  there  are  15,- 
000,000  pensioners  on  public  bounty,  and  if 
that  is  true  there  is  an  office-holder,  a  tax 
eater,  on  the  back  of  every  two  tax  pro- 
ducers in  the  United  States. 

— Stanley. 


MORE  BUSINESS  IN  GOVERNMENT 

The  unrestrained  tendency  to  heedless  expendi- 
ture and  the  attending  growth  of  public  indebted- 
ness, extending  from  federal  authority  to  state  and 
municipality  and  including  the  smallest  political 
subdivision,  constitutes  the  most  dangerous  phase 
of  government  today.  — Harding. 

Unprepared  in  military  equipment  with  no 
policy  for  war  emergency,  based  upon  practical 
business  methods  and  the  necessity  for  speed 
in  order  to  meet  one  of  the  most  crucial  tests 
that  ever  befell  our  government,  resulted  in 
throwing  the  wealth  of  the  nation  into  a  mael- 
strom of  needless  expenditure  and  waste  that 
could  not  well  help  destroy  the  thrift  and  sav- 
ing proclivities  of  both  the  individual  and  the 
state. 

What  would  have  been  the  ultimate  result,  if 
this  condition  had  long  continued,  is  not  hard 
to  conjecture.  It  would  have  spelled  nothing 
less  than  governmental  bankruptcy. 

It  continued,  however,  long  enough  to  create 
one  of  the  greatest  menaces  to  this  country,  a 
mania  for  orgies  of  reckless  spending  without 
regard  to  future  consequences  and  the  inevitable 
day  of  final  settlement. 

115 


116      The  Destiny  of  the  American  City 

With  the  government  leading  the  van  in  its 
inability  to  follow  the  fundamental  principles  of 
thrift  and  saving,  in  the  elimination  of  waste 
and  the  consequent  effect  on  the  individual,  has 
long  been  a  grave  source  of  apprehension  to  the 
practical  conservative  element  of  the  nation. 

President  Harding's  slogan,  "More  Business  in 
Government,"  has  a  tremendous  significance  to 
the  business  world  who  have  feared  that  the 
very  foundation  of  future  prosperity  was  being 
shattered  and  undermined  by  this  dangerous 
tendency  of  the  times. 

Inflation  of  the  currency,  high  wages  com- 
bined with  sub-normal  efficiency  of  labor,  the 
opportunity  of  those  having  something  to  sell 
and  the  ability  to  obtain  most  any  price,  resulted 
in  the  creation  of  a  new  line  of  millionaires, 
made  so,  not  by  the  slow  process  of  cardinal 
business  rules  and  procedure,  but  by  the  oppor- 
tunities of  the  hour. 

It  is  not  strange,  therefore,  with  expenditure 
based  upon  the  easy  and  rapid  acquisition  of 
wealth,  suddenly  shifting  from  the  hands  of  the 
conservative  caretakers  of  the  land  into  the 
hands  of  those  untutored  and  untried  in  the 
deliberate  school  of  financial  training,  that  the 
normal  balance  has  been  destroyed,  making  a 
return  to  the  stability  and  equilibrium  of  the 
past  a  slow,  tedious  and  most  difficult  task. 

President  Harding's  further  admonition  along 


More  Business  in  Government  117 

this  line  is  timely  and  to  the  point :  "Let  me  re- 
mind you,  my  countrymen,  no  government  can 
survive  that  isn't  solvent,  and  in  the  looseness 
of  our  methods  today,  not  only  in  the  federal 
government,  but  more  menacingly  in  our  munic- 
ipal and  state  government,  we  are  spending  with- 
out a  thought  of  tomorrow  and  going  headlong 
to  popular  governmental  bankruptcy,"  and  indi- 
cates that  the  ones  who  have  been  assigned  by 
us  to  steady  the  rudderless  ship  know  only  too 
well  that  this  cannot  be  done  until  we  get  back 
somewhere  near  our  former  footing  with  minds 
working  along  normal  business  lines  in  not 
attempting  to  do  too  many  new  things  before 
the  abuses  are  in  a  measure  corrected. 

While  it  is  admitted  that  there  should  be  more 
business  in  government  and  less  government 
interference  with  business,  it  is  equally  as 
important  that  there  should  be  more  self-gov- 
ernment in  business  in  the  conscientious  en- 
deavors to  eliminate  the  evils  that  make  gov- 
ernment interference  a  necessity. 

The  decentralization  of  government  and 
restoration  of  community  action  and  local  gov- 
ernment throughout  the  country  is  becoming 
one  of  the  crying  demands  of  the  hour. 

As  a  foundation  for  better  and  greater  things, 
it  is  now  conceded  by  the  best  minds  in  the 
country  that  the  federal  government,  the  state, 
municipality  and  individual,  after  this  tremen- 


118      The  Destiny  of  the  American  City 

dous  strain,  must  first  learn  to  functionate  con- 
servatively along  practical  business  lines  before 
commencing  to  build  upon  a  false  and  fictitious 
foundation. 

The  federal  administration  policy  of  enlist- 
ing the  great  coordinators  of  the  nation  to 
direct  reforms  of  government  business  adminis- 
tration and  to  save  taxes  by  recommending  and 
adopting  an  economical  budget  marks  an  epoch 
in  governmental  finance  that  every  political 
subdivision  should  emulate. 

One  more  thing  added  to  the  list  of  financial 
accomplishments  of  the  federal  administration 
should  be  the  refusal  of  further  loans  to  foreign 
governments  and  to  cease  squandering  Amer- 
ican money  in  foreign  lands;  leaving  millions 
of  men  unemployed  and  thousands  of  factories 
idle  to  support  the  warlike  governments  of 
Europe. 

An  able  financier  says:  "Stop  the  exporta- 
tion of  capital  and  retain  for  home  use,  up- 
build our  own  resources,  revive  our  own  markets 
and  then,  if  we  will,  out  of  our  restored  and 
rejuvenated  surplus,  make  such  foreign  invest- 
ments as  for  good  business  reasons  may  suit 
our  ability  and  convenience. 

Government  Expenditures 

The  chief  defects  or  places  where  waste  is 
apparent  in  the  conduct  of  the  business  of  the 


More  Business  in  Government  119 

government  as  pointed  out  by  Edward  G.  Lowry, 
who  has  made  an  exhaustive  study  of  the  cost 
of  governments,  are:  "first,  the  excessive  pro- 
portion of  the  government  income  that  went  for 
military  expenditure;  second,  the  chaotic  condi- 
tion and  lack  of  adequate  supervision  of  the 
government  departments  and  the  unorganized 
condition  that  prevailed  in  government  employ- 
ment." 

It  is  estimated  that  the  federal  government 
has  spent,  during  the  last  fiscal  year,  five  billions 
of  dollars. 

In  addition  to  this  there  are  other  costs  of 
government  which  total  approximately  three 
and  a  half  billions,  chief  of  which  is  city  gov- 
ernment. 

It  is  found  that  the  city  governments  through- 
out the  United  States  are  spending  annually 
from  $25.00  to  $100.00  per  family  more  than 
they  did  in  1914.  Chicago  spending  $70.00  more 
per  family,  Philadelphia  $100.00,  and  so  on. 
Smaller  cities  also  have  the  same  tax  spending 
proclivities.  We  find  Youngstown,  Ohio,  spend- 
ing $80.00  per  family,  with  smaller  cities 
throughout  the  country  doubling  their  expendi- 
tures. 

If  it  were  possible  to  ascertain  all  the  coun- 
try, village  and  school  district  taxes,  in  addi- 
tion to  the  above  already  mentioned,  a  still  more 
impressive  picture  of  conditions  would  be  pre- 


120       The  Destiny  of  the  American  City 

sented.  In  some  instances  in  Massachusetts  the 
direct  taxes,  including  those  of  the  United  States 
Government,  comes  to  $115.00  a  person,  or 
$535.00  per  year  per  family  of  five.  A  limit  has 
been  reached  where  both  business  men,  farmer, 
rural  men,  are  joining  in  a  nation-wide  outcry 
for  relief. 

In  quoting  from  the  pen  of  Harden  Colfax  it 
is  shown  that  the  census  figures  cover  1919  gov- 
ernment costs  in  all  cities  of  30,000  or  more 
inhabitants. 

"There  were  227  such  cities  enumerated  and 
their  population  placed  at  thirty-one  million, 
less  than  one-third  of  Continental  United  States. 

"The  cost  of  governing  the  227  cities  in  1919 
was  approximately  $1,200,000,000,  the  census 
states,  although  part  of  the  cost  was  returned 
in  revenues  from  water  works  and  other  utilities 
which  showed  a  profit. 

"The  cost  of  governing  these  cities  was  not 
less,  it  is  generally  agreed,  in  1920  than  it  was 
in  1919.  In  addition  to  and  on  top  of  this  comes 
the  cost  of  state  government,  a  figure  also 
covered  by  the  census  bureau.  The  forty-eight 
states  spend  a  net  cool  $600,000,000  for  their 
government  costs,  making  the  cost  of  govern- 
ing the  227  cities  and  the  48  states  approximately 
$1,800,000,000  for  the  year.  And  again  it  is  con- 
ceded that  the  cost  of  governing  the  states  in 
1920  was  not  less  than  in  1919. 


More  Business  in  Government  121 

"Municipal  government  costs  are  recorded  by 
the  census  bureau,  however,  only  for  the  larger 
cities.  It  is  estimated  that  it  costs  every  man, 
woman  and  child  in  the  smaller  cities,  towns, 
villages,  boroughs,  etc.,  an  average  of  $20.00  a 
year  for  municipal  government.  In  the  larger 
cities  the  cost  was  $40.00  per  inhabitant.  And 
as  there  are  approximately  80,000,000  persons 
living  in  these  smaller  municipal  units,  the  cost, 
therefore,  was  $1,600,000,000. 

"That  makes  a  total  of  $8,400,000,000  for  the 
cost  of  all  government,  federal,  state,  city,  town, 
village  and  borough. 

"In  addition  to  recording  government  costs, 
the  census  bureau  also  gives  figures  covering 
the  nation's  income,  the  wages,  salaries,  and 
other  earnings  paid  the  vast  army  of  toilers  in 
the  United  States  numbered  roughly  at  40,000,- 
000.  Their  total  annual  incomes  is  placed  in 
round  figures  at  approximately  60  billions  of 
dollars,  an  average  of  $1,600  for  every  man, 
woman  and  child  who  works. 

"Figuring  the  government  cost  in  averages, 
the  committees  find  that  it  costs  every  wage- 
earner  in  the  United  States — and  that  term  in- 
cludes the  salaried  man  and  woman,  too — about 
$210.00  for  government  during  the  last  year. 

"Some  officials  believe  that  it  costs  even  more 
than  that.  In  other  words,  out  of  every  dollar 
the  toiler  gets,  the  government  takes  twelve  and 
one-half  cents." 


122      The  Destiny  of  the  American  City 

In  the  reduction  of  overhead  charges,  busi- 
ness must  check  its  receipts  and  expenditures 
and  watch  closely  the  inlets  where  money  comes 
in  and  more  particularly  the  outlets  where  the 
money  goes  out,  in  order  to  reduce  to  the  mini- 
mum the  cost  of  production. 

Likewise,  the  government,  in  reducing  to  the 
minimum  the  cost  of  government,  must  watch 
and  study  the  many  outlets  through  which  flows 
in  unremitting  streams  the  colossal  sums  ab- 
sorbed annually  from  incomes  of  the  people. 

Through  the  outlet  that  went  for  war  last 
year,  past,  present  and  prospect,  over  90  per 
cent  of  the  national  income  flowed. 

The  magnitude  of  government  expenditures 
and  the  looseness,  inefficiency  and  waste  that 
are  part  and  parcel  of  the  government  method, 
give  those  who  are  called  upon  from  time  to 
time  to  impartially  analyze  government  finances 
and  assume  the  responsibility,  care  and  distribu- 
tion of  these  vast  sums,  a  grave  feeling  of  appre- 
hension and  concern. 

The  federal  administration,  realizing  that 
government  expenditures  scientifically  adminis- 
tered has  become  an  urgent  necessity,  has  in- 
augurated a  national  budget  system  which 
promises  to  become  one  of  the  strongest  pillars 
in  the  whole  economic  structure  of  the  Amer- 
ican nation. 


More  Business  in  Government  123 

Budget  Reform 

While  the  nation  is  gradually  beginning  to 
realize  that  there  are  only  two  routes  back 
towards  national  prosperity,  thrift  and  produc- 
tion, nevertheless,  it  is  quite  well  understood 
by  the  masses  that  the  first  step  towards  its 
revival  must  be  taken  by  the  government  in 
commencing  at  the  top  to  cut  out  profligate 
expenditure. 

As  the  outcome  of  Senator  McCormick's 
efforts  to  increase  efficiency  in  government,  we 
now  have  the  result  of  the  first  measure  on  his 
program :  the  establishment  of  a  national  budget 
system,  which  was  passed  by  the  last  Congress 
but  vetoed  by  President  Wilson  and  repassed 
by  this  Congress. 

When  history  is  written,  it  will  be  found  that 
one  of  the  most  important  things  accomplished 
by  the  present  administration,  resulting  in  un- 
told economic  benefits  to  the  nation,  have 
been  the  measures  taken  in  budget  reform  un- 
der the  direction  of  General  Charles  G.  Dawes. 

In  the  first  report  made  it  shows  a  reduction 
of  two  billions  of  dollars  less  than  the  actual 
expenditures  of  1921. 

In  establishing  a  sound  system  of  business 
operation  an  important  milepost  has  been 
reached  and  passed  in  the  science  of  govern- 
ment in  the  United  States. 


124      The  Destiny  of  the  American  City 

Director  Dawes  describes  the  old  situation  as 
that  of  a  private  corporation  whose  president 
gave  practically  no  attention  to  its  ordinary 
routine  business,  whose  administrative  vice- 
presidents  were  allowed  to  run  their  several 
departments  without  enforced  contact  in  the 
discussion  of  routine  business  and  as  if  each 
separate  department  were  an  independent 
authority,  with  no  executive  pressure  or  super- 
vision, without  co-ordination,  without  a  system 
for  making  purchases  or  selling  materials  under 
a  unified  policy.  "No  balance  sheet  of  the  cor- 
poration as  a  whole  was  ever  prepared.  No 
complete  inventories  of  its  properties  existed. 
No  statement  of  its  current  assets,  such  as  sal- 
able material  and  current  supplies,  had  ever 
been  made,  nor  was  there  any  easy  method 
existing  of  securing  it.  There  was  no  proper 
co-ordination  of  the  various  branches  of  admin- 
istration and  no  machinery  by  which  the  execu- 
tive could,  even  if  he  had  been  disposed  to, 
bring  effective  pressure  for  economy  and  effi- 
ciency in  expenditure." 

The  waste  involved  has  been  continuous  and 
heavy,  and  of  late  years  there  has  grown  up  a 
demand  for  modern  organization.  The  enor- 
mous expenditures  of  the  war  brought  this  de- 
mand to  a  definite  imperative. 

After  one  year  of  hard  work,  General  Dawes 
reports  that  the  government  can  be  run  not  only 


More  Business  in  Government  125 

as  economically  as  a  private  business,  but  more 
economical  than  a  private  business. 

In  placing  the  government  on  a  business  basis 
for  the  first  time  in  its  history,  it  was  done  by 
clearing  away  bureaucratic  routine  and  sub- 
stituting therefore  orderly  methods  and  scien- 
tific accounting. 

General  Dawes  found  on  analyzing  the  situa- 
tion that  the  government  for  more  than  130 
years  has  been  keeping  no  books  but  a  check 
book,  and  during  all  this  period  the  government 
has  never  struck  a  balance  sheet. 

Dawes  conscripted  the  services  of  fifteen  busi- 
ness men  on  a  dollar  a  year  basis  to  reorganize 
the  business  method  of  the  departments,  some 
of  them  bringing  staffs  of  their  own  experts  with 
them. 

To  show  that  this  enormous  reduction  of  ex- 
penses had  not  "just  happened,"  General  Dawes 
pointed  out  that  of  the  total  amount  expended 
last  year  $2,673,000,000  were  subject  to  executive 
control  and  therefore  could  be  lessened  by  better 
business  management.  He  showed  that  this 
year,  under  the  same  category,  only  $732,000,000 
has  been  spent,  a  reduction  of  $900,000,000  re- 
sulting from  more  efficient  and  economical 
management. 

More  than  $250,000,000  of  this  prodigious 
economy  is  accounted  for  by  the  executive  pres- 
sure for  retrenchment  and  systemization  exerted 


126       The  Destiny  of  the  American  City 

upon  the  forty-three  departments  and  indepen- 
dent establishments  of  the  government  which 
heretofore  have  operated  without  any  central 
control  or  direction,  each  a  law  unto  itself  so 
far  as  obtaining  appropriations  and  expending 
money  were  concerned. 

The  result  of  this  test,  after  a  year's  trial, 
fully  demonstrated  what  any  government  down 
to  the  smallest  political  unit  can  do,  with  a 
determined  effort  in  the  direct  application  of 
fundamental  business  principles  to  governmen- 
tal affairs. 

It  is  also  shown  by  this  practical  demonstra- 
tion that  there  is  a  potential  power  lying  dor- 
mant within  the  body  public,  strong  enough  if 
called  upon  and  utilized  to  get  underneath  and 
overcome  the  subtile  forces  of  public  and 
bureaucratic  self-interest  which  with  their  in- 
ertia of  monotonous  routine  have  preserved 
through  generations  the  wasteful  and  inefficient 
methods  of  our  federal  administration. 

Brigadier-General  Lord,  now  director  of  the 
budget  system,  who  seems  to  be  a  man  care- 
fully selected  for  the  job,  in  a  recent  speech 
reveals  the  reason  why  estimates  of  depart- 
ments and  requests  for  appropriations  are  in- 
variably "padded"  to  an  amount  far  greater 
than  needed. 

In  the  language  of  the  new  director,  "the  first 
estimate  submitted  to  congress  was  an  honest 


More  Business  in  Government  127 

minimum  estimate,  without  one  penny  of  pad- 
ding. I  was  new  in  the  business  and  went  before 
the  house  appropriating  committee  as  inno- 
cently and  guilessly  as  a  dove.  I  shudder  at  what 
they  did  to  that  unpadded  estimate — that  is  to 
say,  their  experience  in  the  ways  of  congress- 
men and  their  desire  to  show  their  homefolks 
how  much  they  caused  to  be  cut  from  the  appro- 
priation and  that,  come  to  show  in  furnishing 
the  estimate,  a  species  of  dishonesty  in  that  they 
asked  for  more  than  necessary  in  the  hope  that 
they  would  get  almost  as  much  as  required. 

"The  result  has  been  a  looseness  in  adminis- 
tration departments  that  finally  became  so  bad 
as  to  bring  forth  unequivocal  executive  deter- 
mination to  put  an  end  to  it." 

The  benefit  derived  in  establishing  a  national 
budget  system  is  beginning  to  be  quite  notice- 
able in  the  salutary  effects  it  is  having  upon 
the  different  states  and  municipalities. 

In  the  endeavor  to  find  out  just  what  has  been 
accomplished  along  this  line,  our  efforts  have 
been  finally  rewarded  in  news  from  Canton, 
Ohio. 

The  enterprising  city  of  Canton  is  so  pleased 
with  the  exploit  of  reducing  its  budget  by  §&69- 
000,000  this  year  that  it  is  telegraphing  it  broad- 
cast to  create  envy  and  amazement  among  tax 
payers  in  other  cities. 

It  has  been  suggested  on  account  of  the  fed- 


128       The  Destiny  of  the  American  City 

eral  administration  reproving  not  only  the 
federal  government  in  running  in  debt  without 
regard  to  financial  responsibility,  but  also  state, 
county  and  municipal  governments  as  well,  that 
the  administration  should  now  hang  up  some 
sort  of  distinguished  service  medal  for  the 
municipality  that  makes  the  best  yearly  record 
for  keeping  their  expenses  within  their  income. 

The  city  of  Canton  with  $86,000,000  saving 
might  not  win  the  prize,  but  it  would  have  the 
comfort  of  being  associated  with  a  more  numer- 
ous company  of  cities  in  the  effort  to  retrench. 

The  correctness  of  the  position  taken,  that  if 
the  federal  government  itself  should  set  a  worth- 
while example  in  debt-cutting  and  profligate 
expenditures  it  would  be  an  incentive  for  all 
forms  of  local  government  to  do  likewise,  is 
exemplified  by  the  retrenchment  measures 
adopted  by  the  city  of  Canton,  and  which,  no 
doubt,  will  be  quickly  followed  by  other  cities 
whose  taxpayers  are  laboring  under  heavy  and 
unjust  burdens. 

In  making  a  further  research  along  this  line, 
we  find  not  only  municipalities  but  states  tak- 
ing immediate  steps  to  avoid  the  waste  and  ex- 
travagance of  former  legislatures  and  insisting 
on  financial  reforms  in  the  immediate  future. 

They  are  not  content  to  wait  for  constitutional 
conventions  in  order  to  obtain  a  sane  system  of 
expenditure,  but  are  calling  upon  the  forthcom- 


More  Business  in  Government  129 

ing  legislatures  to  enact  such  measures  without 
delay. 

This  is  the  condition  in  the  state  of  Pennsyl- 
vania, which  is  now  faced  with  a  deficit  of 
$20,000,000  or  more. 

The  candidacy  of  Gifford  Pinchot  was  a  pro- 
test against  these  practices,  and  his  nomination, 
in  spite  of  strong  opposition,  means  that  the 
taxpayers  of  the  commonwealth  want  a  radical 
change  in  methods  of  public  expenditures. 

In  the  past  the  national  government  has  often 
set  bad  examples  by  careless  expenditure  of 
public  funds,  not  only  that,  but  is  continually 
besieged  by  advocates  of  many  freak  laws  ready 
to  add  still  more  millions  to  this  overburdened 
account. 

The  True  Optimism 

False  optimism,  regardless  of  real  facts  in  the 
diagnosis,  is  not  less  dangerous  than  pessimism. 

Cultivating  optimism  by  endeavoring  to  de- 
lude ourselves  by  using  it  as  an  opiate  to  blunt 
common  sense  understanding  of  things  is  not 
only  dangerous  to  ourselves,  but  to  the  com- 
munity in  which  we  operate. 

The  Southern  bishop  who  makes  the  charge 
that  "he  who  predicts  hard  times  is  worse  than 
a  Hun  and  a  traitor  to  his  country,"  the  refrain 
of  which  was  published  broadcast  over  the  land, 
may  be  good  for  one,  but  a  very  poor  prescrip- 
tion for  another. 


130      The  Destiny  of  the  American  City 

A  remedy  for  one  may  be  poison  for  another. 
Optimism  prescribed  to  one,  conservative  in 
methods  and  habits,  may  be  in  its  effects  bene- 
ficial; to  another  whose  enjoyment  and  interests 
of  the  hour  overshadows  all  thought  of  the 
future  it  may  in  its  effects  be  detrimental. 

The  position  taken  that  too  much  false  op- 
timism, unsupported  by  real  facts,  in  the  past 
few  years  has  proved  a  loss  and  a  detriment  to 
many  beyond  repair,  can  not  be  successfully 
challenged. 

Bureaucracy 

From  our  research,  for  information  as  to  the 
effect  of  bureaucracy  on  the  cost  of  govern- 
ment, we  quote  from  a  report  by  Oscar  Hewitt, 
whose  investigations  along  this  line  are  quite 
interesting. 

"Bureaucracy  came  through  the  World  War 
without  a  scratch — unless  by  a  pen  point.  Now 
it  is  apparently  not  only  more  firmly  entrenched 
with  a  larger  army  than  before,  but  it  is  spread- 
ing its  power  in  one  direction  at  least,  which 
will  probably  make  the  national  administration 
unpopular  with  those  who  pay  the  government's 
bills. 

"These  bills  of  hundreds  of  millions  in  federal 
disbursements  are  now  carried  on  the  back  of 
the  man  who  must  visit  the  internal  revenue 
office.     Before  the  war  the  tariff  was  looked 


More  Business  in  Government  131 

upon  as  the  big  money  getter,  because  it  then 
paid  from  two-fifths  to  one-half  of  the  govern- 
ment expenses.  But  there  has  been  a  change. 
This  year  it  will  pay  less  than  one-eleventh. 

"For  help  to  collect  last  year's  taxes,  Congress 
appropriated  $34,599,190.  Nearly  every  one 
would  assume  that  the  cost  of  collections  this 
year  should  be  less.  If  $34,599,190  was  a  rea- 
sonable expense  to  collect  $3,214,500,000  last 
year,  most  any  one  would  suppose  that  it  would 
require  several  million  less  to  collect  $2,571,- 
600,000  this  year. 

"But  that  supposition  is  wrong.  The  internal 
revenue  bureau  says  it  is  wrong.  Both  the  House 
of  Representatives  and  the  Senate  of  the  United 
States  have  said  so.  It  will  cost  more  money  to 
collect  $2,571,600,000  in  taxes  this  year  than  it 
cost  to  collect  an  estimated  $3,214,500,000  in 
taxes  last  year. 

"For  the  purpose  for  which  the  bureau  re- 
ceived appropriations  of  $34,599,190  last  year, 
it  asked  for  $42,999,190  this  year,  an  increase  of 
$8,400,000  to  collect  $642,900,000  less  taxes. 

"But  that  was  so  large  that  law-making  appro- 
priators  could  not  see  it.  However,  Congress 
was  prevailed  upon  to  authorize  the  expendi- 
ture of  $39,120,880  this  year  for  the  same  pur- 
poses for  which  it  appropriated  only  $34,599,190 
last  year. 

"Of   course   plausible    arguments   were   pre- 


132      The  Destiny  of  the  American  City 

sented  to  justify  such  an  increase  in  the  appro- 
priation. The  bureaucrats  are  skilled  in  this 
line.  It  is  some  art  to  convince  an  appropriating 
body  that  it  costs  between  13  and  14  per  cent 
more  when  the  taxes  to  be  collected  have  de- 
creased an  estimated  20  per  cent.  But  it  has 
been  done.  The  bureau  started  out  to  show  that 
its  expense  in  collecting  taxes  will  be  24  per  cent 
higher  this  year  than  last.  This  permitted  Con- 
gress to  make  a  'big  saving.' 

"In  this  instance  the  congressmen  and  sena- 
tors got  out  their  paring  knives  and  slashed 
$3,878,310  from  the  bureau  estimates  as  orig- 
inally presented.  This  is  one  of  the  items  of 
saving  presented  by  the  Congressional  Record. 
The  fact  is  that  instead  of  any  saving  in  this 
instance  Congress  appropriated  $4,521,690  more 
than  last  year,  although  the  tax  collection  will 
be  decreased  an  estimated  $642,900,000. 

"What  could  be  more  convincing  that  the 
bureaucrats  of  the  federal  service  are  still  highly 
influential  in  the  appropriating  of  federal 
funds?" 

In  Mr.  Hewitt's  report  it  is  seen  that  there 
will  be  20  per  cent  less  collected  by  the  bureau 
of  internal  revenue,  that  Congress  has  granted 
authority  to  the  bureau  to  spend  13  per  cent 
more,  and  that  the  cost  of  tax  collecting  has 
risen  41  per  cent. 

More  positions  for  constituents,  with  powerful 


More  Business  in  Government  133 

influences  always  at  work  in  behalf  of  the  mul- 
tiplication of  civilian  jobs  to  supply  the  con- 
stantly growing  demand  of  the  politician,  is  one 
of  the  weak  points  in  our  federal  financial 
system. 

About  the  great  pressure  constantly  brought 
upon  Congress  in  form  of  increasing  public  ex- 
penditures by  those  in  power  elected  to  do  the 
spending,  the  public  has  but  very  little  knowl- 
edge. 

It  is  found  that  bureaucracy  complicates  ma- 
chinery to  keep  itself  employed. 

"That  red  tape  is  insisted  upon  in  order  to 
find  offices  for  those  to  unwind  it." 

That  it  is  an  ancient  device,  originated  and 
preserved  in  order  to  give  employes  something 
to  do. 

That  it  indulges  in  mulcting  the  taxpayer  of 
inordinate  taxes  in  order  to  maintain  a  public 
business. 

That  it  employs  thousands  in  doing  unneces- 
sary things,  thereby  creating  a  loss  to  industry 
by  the  non-production  of  essential  things. 

It  creates  an  entangled  network  on  private 
enterprises  that  tend  to  lower  its  efficiency. 

"It  invades  the  private  sanctum,  imposes  loss 
of  time,  vexations,  exactions  and  numerous  re- 
views." 

It  creates  a  slavery  to  officialdom  that  savors 
much  of  socialism,  under  whose  banner  bureau- 
cracy reigns  triumphant. 


134      The  Destiny  of  the  American  City 

It  tends  toward  a  complication  rather  than 
a  simplification  of  tax  laws  and  regulations,  a 
thing  which  the  government  should  speedily 
correct. 

It  creates  a  species  of  demoralization  among 
the  taxpayers  in  "evading  hair-splitting  exac- 
tions and  unjust  impositions,"  for  which  some- 
thing should  be  substituted  that  tends  to  create 
rather  than  to  destroy  good  citizenship  and  en- 
courage the  taxpayer  to  obey  the  law  rather 
than  to  disregard  it  and  to  meet  his  obligation 
with  the  government  in  the  best  of  good  faith. 

History  is  replete  with  many  instances  of 
national  suffering  and  economic  loss,  a  result  of 
the  spread  and  growth  of  bureaucracy. 

The  French  revolution  came  from  the  break- 
down of  a  centralized  bureaucratic  system, 
which  brought  France  to  the  brink  of  financial 
ruin,  resulting  first  in  stagnation,  then  throttling 
and  crushing  private  enterprises  and  finally 
famine  and  death. 

It  behooves  the  American  people,  therefore, 
to  get  away  from  the  idea  that  it  is  easier  to 
pay  than  to  resist  and  to  understand  that  the 
tendency  to  growth  and  expansion  in  bureau- 
cracy requires  most  constant  and  persistent 
resistance. 


More  Business  in  Government  135 

Federal  Aid 

Public  warning  has  been  given  by  the  admin- 
istration, that  unless  the  expenditures  are  kept 
within  the  limits  of  prospective  revenues  the 
pruning  knife  will  be  used  to  prevent  a  deficit. 

This  question,  however,  should  not  be  passed 
by  without  giving  some  consideration  to  what 
degree  "federal  aid"  is  contributing  to  the  cost 
of  government. 

The  federal  government  has  assumed  the 
right  of  directing  certain  beneficient  improve- 
ments in  national  welfare  which  may  be  carried 
on  within  the  confines  of  any  state  wishing  to 
co-operate  under  certain  conditions. 

While  it  is  true  under  "federal  aid"  plan 
there  are  many  good  things  on  the  program 
worthy  of  the  greatest  consideration,  such  as 
education,  child-welfare,  good  roads  and  public 
health,  at  the  same  time,  nothing  can  be  accom- 
plished on  the  stupendous  scale  outlined  without 
the  use  of  a  great  deal  of  money  which  must  be 
raised  somehow,  somewhere,  by  somebody. 

In  our  analysis  "federal  aid"  may  appear  to 
be  a  misnomer.  It  has  been  truthfully  said  that 
"federal  aid"  is  one  of  the  most  deceptive 
phrases  invented  in  this  era  of  phrase-making, 
for  the  reason  it  implies  assistance  whereby 
something  may  be  offered  and  received  for 
which  the  recipient  pays  little  or  nothing. 

It  must  always  be  kept  in  mind  that  for  what- 


136      The  Destiny  of  the  American  City 

ever  is  produced  something  must  be  paid,  and 
if  offered  to  the  public  by  the  government  the 
people  of  which  it  is  composed  must  necessarily 
pay  the  cost. 

This  is  largely  lost  track  of  in  "federal  aid" 
transactions,  as  it  strikes  the  individual  rather 
indirectly.  Nevertheless,  in  the  aggregate  the 
amount  of  taxes  paid  by  the  taxpayer  in  a  given 
period,  may  rest  assured,  is  always  included 
somewhere  along  the  line,  although  not  spe- 
cifically classified  as  a  "federal  aid"  transac- 
tion, so  as  to  be  discernible  as  such  to  the  naked 
eye. 

We  have  been  hearing  a  great  deal  lately 
about  inventing  taxing  systems,  whereby  taxes 
may  be  assessed  and  paid  unconsciously  by  the 
taxpayer,  thereby  relieving  one  of  the  great 
mental  strains  that  usually  accompanies  ab- 
normal tax  assessments. 

The  psychological  effect  of  such  a  system 
seems  to  be  extremely  satisfying,  especially  to 
the  one  who  is  able  to  live,  thrive,  and  console 
himself  with  the  philosophy  that  "it  makes  no 
difference  so  long  as  you  don't  know  what  hurts 
you." 

In  "federal  aid"  transactions  the  people  con- 
tribute in  two  ways,  one  through  the  federal 
government,  the  other  through  the  state  govern- 
ment. 

To  pay  for  what  the  federal  government  con- 
tributes to  the  state,  the  money  is  collected  from 


More  Business  in  Government  137 

the  people  of  the  nation  by  the  federal  govern- 
ment revenue  tax  collectors.  What  the  states 
pay  to  match  up  the  gifts  of  the  federal  govern- 
ment must  be  collected  from  the  people  by  the 
revenue  tax  collectors  of  the  state  co-operating 
in  the  deal. 

In  other  words,  the  money  used  in  "federal 
aid"  transactions  must  be  paid  by  the  people  of 
the  nation,  as  a  whole,  and  also  by  the  people 
of  the  state  co-operating  with  the  federal  gov- 
ernment. 

It  is  proverbial  in  governmental  financing  that 
extravagance  accompanies  expenditure  on  in- 
vestment of  public  funds. 

It  is  also  an  indisputable  fact  that  an  employe 
working  for  the  government  does  not  give  as 
much  service  as  he  does  in  working  for  the 
individual. 

The  creation  of  new  jobs  by  the  government, 
solely  for  the  purpose  of  giving  employment, 
is  a  thing  unheard  of  in  the  management  of  in- 
dustrial enterprises,  working  conscientiously  in 
the  interest  of  the  stockholder. 

Money  paid  for  salaries  in  many  cases  would 
be  lower  if  based  upon  actual  services  ren- 
dered. 

It  can  be  readily  seen  under  these  conditions 
that  the  states  which  accept  "federal  aid,"  as- 
suming these  inevitable  leakages,  must  necessa- 
rily gauge  the  appropriations  accordingly.  Con- 
sequently, in  the  natural  growth  and  expansion 


138       The  Destiny  of  the  American  City 

of  the  "federal  aid"  system,  it  is  not  difficult  to 
see  that  the  states  are  destined  to  lose  more  or 
less  control  of  local  taxation  rates. 

The  municipality,  laboring  with  the  same 
principles  within  the  state  known  as  "state  aid," 
is  affected  in  the  same  manner.  For  that  which 
is  true  as  existing  between  the  federal  govern- 
ment and  the  state  is  also  true  as  between  the 
state  and  municipal  government. 

Our  attention  has  been  called  to  a  detailed 
statement  that  has  been  obtained  from  the 
treasury  department  at  Washington  of  millions 
which,  under  existing  laws,  are  appropriated 
annually  from  the  federal  treasury  or  pledged 
for  future  appropriations  to  carry  out  the  vari- 
ous "federal  aid"  plans  that  have  been  invented 
in  recent  years. 

The  total,  it  is  reported,  is  an  astounding  one, 
particularly  when  it  is  remembered  that  it  is  to 
be  doubled  at  least  by  the  sum  of  state  appro- 
priations that  are  necessary  if  the  states  avail 
themselves  of  the  questionable  advantages 
offered  by  the  federal  laws. 

So  we  see  in  "federal  aid"  transactions,  as 
well  as  in  other  forms  of  taxation,  that  the 
growth  and  expansion  of  the  system,  the  natural 
attributes  of  every  species  of  human  endeavor, 
must  also  have  its  limitation  by  proper  checks 
and  balances,  so  as  to  conform  to  the  economic 
welfare  of  the  nation. 


XIII 
THE  FINAL  ANALYSIS 


At  times  one  cannot  help  feel,  in  the  endeavor  to 
solve  the  multiplicity  of  both  national  and  inter- 
national problems  with  which  we  are  confronted, 
what  a  good  thing  it  would  be  if  we  were  only  able 
to  pause  just  long  enough  to  take  a  business  man's 
inventory  of  our  assets  and  liabilities  and  gather 
up  the  fragments  and  settle  the  old  before  under- 
taking new  and  untried  ventures. 

In  their  solution  these  problems  need,  more 
than  anything  else,  an  unlimited  supply  of  common 
sense,  patience  and  courage,  not  only  in  interna- 
tional, but  national  reconstruction  as  well. 

Ever  since  the  armistice  was  signed,  impatience 
at  the  delay  in  the  revival  of  the  building  industry 
has  been  continuous  and  prolonged,  without  much 
thought  being  given  to  anything  that  would,  in  a 
practical  way,  ameliorate  the  conditions  so  as  to 
encourage  activity. 

This  impatience  indicates  only  too  clearly  the 
feverish  turmoil  underneath  the  surface  and  the 
abnormal  condition  of  the  world,  not  only  phys- 
ically, but  mentally.  When  this  feverish  tension 
is  relieved  and  relaxation  follows,  we  shall  all 
realize  that  this  is  about  the  same  old  world  after 
all,  functionally  weak  and  all  out  of  tune  now, 
but  organically  and  constitutionally  sound  and 
strong  enough  to  fight  all  battles  and  weather  all 
storms. 

— Municipal  Problems,  1918. 


THE  FINAL  ANALYSIS 

There  is  always  a  limit,  where  the  upper  ten- 
dency in  prices  may  go,  and  when  that  limit,  and 
one  point  beyond,  is  reached,  automatically  the 
demand  ceases,  the  vibration  of  the  pendulum 
backward  and  forward  continues  in  the  endeavor 
to  find  a  congenital  point,  where  it  may  become 
stabilized  by  the  co-ordination  of  these  three  ele- 
ments, so  that  supersensitive  capital  may  again 
step  in  to  play  its  most  important  part. 

— Municipal  Problems,  1918. 

In  the  final  analysis  we  reach  the  conclusion 
that  in  building  construction  labor  is  by  far  the 
most  important  factor  entering  into  it. 

The  mind  of  the  average  individual,  in  speak- 
ing of  labor  in  connection  with  building  con- 
struction, usually  rests  on  the  labor  it  takes  to 
assemble  into  a  building  the  material  piled 
around  the  building  site. 

He  fails  to  consider  that  all  material,  lumber, 
brick  and  stone,  represents  stored  or  frozen 
labor. 

From  the  tree  in  the  forest,  from  the  stone  in 
the  quarry,  from  the  clay  in  the  kiln,  to  the  lum- 
ber, stone  and  brick  on  the  building  site  repre- 
sents labor  in  its  greatest  proportion  and  most 
concrete  form. 

Labor  is  to  a  building  what  moisture  is  to  the 

141 


142       The  Destiny  of  the  American  City 

human  body.  Without  either  very  little  re- 
mains to  be  utilized,  so  in  the  final  analysis  the 
cost  of  building  construction  depends  upon 
labor  more  than  any  other  factor. 

In  other  words,  labor  becomes  the  final  arbiter 
in  deciding  building  cost,  and  upon  labor's  de- 
cision the  future  cost  of  building  construction 
primarily  rests. 

Now,  with  this  one  fact  thoroughly  under- 
stood and  firmly  fixed  in  our  mind,  we  proceed 
to  the  next  step  in  our  analysis.  If  it  is  decided 
that  the  prevailing  price  of  all  the  labor  enter- 
ing into  building  construction  is  to  be  the  per- 
manent wage  rate,  we  find  that  a  building  cost- 
ing $8,000  in  normal  times  now  costs  $16,000. 
The  house  that  rents  in  normal  times  for  $25.00 
now  rents  for  $50.00,  one  at  $40.00  now  $80.00, 
and  so  on. 

In  other  words,  under  the  present  wage  scale 
rents  will  always  remain  high,  necessarily  so  in 
order  to  pay  the  interest  on  the  investment. 

It  is  impossible,  therefore,  to  have  one  with- 
out the  other.  If  rents  do  not  increase  in  pro- 
portion to  the  increased  cost  of  construction,  the 
incentive  to  build  is  lost  and  a  curtailment  of 
building  construction  and  employment  naturally 
follows.  If  building  labor  has  determined  to 
maintain  this  present  position,  it  must  therefore 
publicly  proclaim  itself  for  a  double  priced 
house,  carrying  a  double  priced  rental. 


The  Final  Analysis  143 

The  next  proposition  that  confronts  us  in  this 
analysis  is,  Is  labor  strong  enough  in  this  posi- 
tion to  hold  out  long  enough  to  convert  the  home 
builders  to  the  fact  that  an  $8,000  house  will 
always  be  a  $16,000  house  and  a  $50.00  rental 
will  always  be  a  $100.00  rental? 

For  without  this  conversion  it  is  obvious  that 
the  home  builder  will  refuse  to  act.  It  is  also 
true  if  capital  and  the  home  builder  can  be  con- 
verted to  the  idea  of  a  double  priced  house  and 
a  double  priced  rental  all  our  troubles  will  be 
solved  and  the  keynote  to  industrial  activities 
will  have  been  struck. 

In  this  analysis  we  have  reached  the  period 
of  conversion.  In  reaching  this  point  another 
element  of  great  importance  forces  itself  into 
our  calculation,  and  that  is  the  element  of  time. 
We  are  now  forced  to  ask  how  long  it  will  take 
labor  to  convert  the  home  builder  to  his  point 
of  view,  or  how  long  it  will  take  the  home 
builder  to  convert  labor  to  his  viewpoint. 

If  labor  is  determined  in  this  position  and 
figures  on  maintaining  it  at  any  cost,  it  means  a 
certain  length  of  time  must  be  laid  aside  within 
which  to  make  this  conversion. 

If  the  home  builder  is  determined  in  his  posi- 
tion he  must  also  do  the  same  thing,  so  the 
element  of  time  on  the  part  of  both  labor  and 
the  home  builder  becomes  now  the  most  im- 
portant factor  in  the  analysis.    It  resolves  itself 


144       The  Destiny  of  the  American  City 

on  how  long  a  time  labor  can  afford  to  wait  for 
this  conversion  of  the  home  builder  or  how  long 
a  time  the  home  builder  can  afford  to  wait  until 
labor  is  converted. 

So  we  have  reached  the  point  in  the  road 
where  labor  and  the  home  builder  are  resting. 

We  have  come  up  to  the  same  old  stone  wall 
in  the  road  that  we  have  been  trying  to  get 
around  in  so  many  different  ways,  with  the 
problem  still  unsolved. 

In  this  period  of  conversion  the  home  builder 
has  not  only  himself  to  convert,  but  capital  as 
well.  He  must  not  only  convince  himself  that 
he  is  able  to  build  a  double  priced  house,  pay 
more  interest  and  make  double  partial  pay- 
ments, but  he  must  also  convert  capital  into  the 
idea  that  he  is  able  to  make  these  payments  and 
take  care  of  all  possible  shrinkage  in  values 
without  defalcation. 

While  the  home  builder  is  endeavoring  to  con- 
vert capital,  labor  must  also  do  some  proselyting 
on  its  own  account. 

It  must  convert  non-building  labor,  compris- 
ing all  labor  not  directly  entering  into  building 
construction,  the  artisan,  the  salesman,  the  clerk 
and  that  vast  army  of  those  of  limited  means, 
all  wanting  homes,  into  the  idea  of  a  double 
priced  house,  carrying  a  double  priced  rental 
value. 

We  now  find  the  destiny  of  the  building  in- 


The  Final  Analysis  145 

dustry  centralizing  around  two  important 
groups,  the  home  builder  and  capital  on 
one  side,  who  refuse  to  enter  an  abnormal 
market,  and  the  triangle  (labor,  material-man 
and  contractor)  on  the  other  side,  who  are 
unable  to  build  at  a  price  that  the  public  will 
buy. 

A  formula  that  will  throw  into  seething  activ- 
ity these  tremendous  constructive  forces  of  the 
nation  will  be  the  most  important  discovery  of 
the  hour. 

One  point,  however,  must  be  kept  in  mind 
whenever  the  relationship  between  labor  and 
employer  is  under  discussion,  and  that  is  the 
solution  of  the  problem  does  not  rest  or  depend 
altogether  upon  the  harmonious  relationship 
existing  between  labor  and  employer  as  to 
wages,  if  the  wages  are  so  high  that  an  article 
can  not  be  manufactured  at  a  price  that  the 
public  will  buy  and  continue  to  buy  without 
interruption. 

While  labor  and  employer  may  agree  har- 
moniously as  to  a  satisfactory  scale  of  wages, 
if  the  scale  involves  an  increase  in  the  cost  of 
production  to  consumers  and  consumption  for 
this  reason  falls  off,  employment  will  fall  off 
and  the  total  sum  disbursed  to  labor  at  the  end 
of  the  period  may  be  much  less  than  if  the  wage 
rates  were  lower. 

All  must  become  reconciled  to  the  inevitable 

10 


146       The  Destiny  of  the  American  City 

fact  that  the  day  of  selling  anything  at  any  price 
is  gone,  never  to  return. 

There  is  a  certain  price  for  every  product  that 
encourages  the  largest  sale  and  promotes  the 
greatest  distribution.  Toward  this  point  labor 
and  employer  must  persistently  guide  their  sub- 
tile forces  until  the  congenital  point  is  reached 
and  the  equilibrium  finally  established. 


XIV 

THE  CITY  AND  THE  TAX 
PROBLEM 


The  nation-wide  outcry  against  over- 
taxation has  reached  a  point  where  the  in- 
dividual protest  has  become  ineffective  and 
which  sooner  or  later  will  result  in  forcing 
the  tax-ridden  public  throughout  the  land 
into  an  organized  effort  for  relief. 

— Municipal  Problems,  1921. 


THE  CITY  AND  THE  TAX 
PROBLEM 

The  tremendous  tax  burdens  under  which  the 
whole  world  is  staggering  are  more  than  any- 
thing else  responsible  for  the  world-wide  busi- 
ness depression. 

Next  to  freight  rates  and  wages,  taxes  have 
more  to  do  with  business  than  anything  else. 

There  is  no  department  of  governmental 
activity  more  difficult  of  administration  than 
taxation  and  assessment,  and  it  has  been  truly 
said,  "There  is  no  department  where  equity  is 
more  essential.  There  is  no  department  where 
inequity  has  more  disastrous  consequences  to 
business  and  industry,  on  the  prosperity  of 
which  citizens  generally  have  to  depend  for 
their  living." 

Not  only  do  we  find  it  so  in  this  country,  but 
also  in  Canada  we  hear,  "owing  partly  to  neces- 
sarily huge  increase  in  national  taxation  and 
partly  to  the  spectacular  increase  in  municipal 
expenditure,  cities  everywhere  are  at  their  wits' 
end  to  discover  new  sources  of  taxation." 

Too  often  amendments  are  made  to  municipal 
taxation  and  assessments  legislation  without  a 
full    appreciation    of   secondary    results.      Too 

149 


150       The  Destiny  of  the  American  City 

often  the  motto  is,  "get  the  money  where  it  is 
the  easiest  to  get  without  due  consideration  to 
the  canons  of  equality  in  taxation." 

It  is  obvious,  if  we  still  persist  in  calling  upon 
the  goose  to  lay  the  golden  egg,  we  must  not 
burden  him  too  heavily  with  the  local  and 
national  load. 

It  becomes  a  problem,  therefore,  of  the  utmost 
importance  for  the  government,  the  state  and 
the  municipality,  each  in  their  respective 
spheres,  to  see  what  can  be  done  in  the  way  of 
eliminating  ruinous  over-taxation  and  to  en- 
courage capital  to  come  out  of  its  hidden  re- 
cesses into  the  open  channels  of  industrial 
activity. 

Excess  Profit  Tax 

To  show  the  effects  of  over-taxation  upon  the 
growth  of  the  municipality,  an  illustration  of 
the  practical  workings  of  the  excess  profit  tax 
will  give  some  idea  of  the  retroactive  effects  of 
certain  forms  of  tax  legislation  that  aimed  to 
cure  one  thing  and  in  its  effects  crippled  an- 
other, or  as  another  puts  it,  "the  gallows  which 
Haman  had  erected  to  hang  Mordecai  have  been 
used  for  the  execution  of  their  builder." 

The  excess  profit  tax,  aiming  to  make  the 
profiteer  pay  his  just  proportion  of  the  cost  of 
government,  measured  on  the  basis  of  what  a 
certain  class  was  able  to  make  out  of  war  con- 


The  City  and  the  Tax  Problem         151 

ditions,  overlapped  in  its  effects  upon  another 
class,  operating  under  serious  loss  and  exces- 
sive overhead  expenses  caused  by  the  same  war 
conditions. 

The  expansion  and  beautifying  of  our  cities 
is  largely  due  to  the  vision  and  initiative  of 
the  subdivisor,  the  individual  who,  in  his  mind, 
is  able  to  visualize  barren  acreage  into  beautiful 
parks,  broad  avenues  and  artistic  landscaping 
effects,  who,  not  unlike  the  painter,  has  outlined 
in  his  mind's  eye  a  great  theme,  his  conception 
of  which  is  transmitted  to  canvas  for  the  enjoy- 
ment of  the  ages. 

This  vision,  this  desire  to  create  something, 
may  be  partly  due  to  the  natural  cravings  of  an 
artistic  temperament  or  obsessed  with  a  philan- 
thropic trend  to  do  something  for  civic  better- 
ment and  public  good,  combined,  possibly,  with 
a  desire  to  realize  from  the  investment  some- 
thing in  the  nature  of  a  financial  return. 

For  it  must  be  known,  to  build  a  city  it  takes 
something  more  than  a  vision  which  may,  in  a 
flash,  be  scattered  to  the  four  winds  by  one  cold 
blast  of  discouragement. 

It  must  also  be  remembered  that  the  vision  is 
not  always  conjured  in  the  mind  of  the  one  who 
has  the  money  to  carry  it  out,  but  is  more  often 
in  the  one  who  is  unable,  financially,  to  make 
his  dreams  come  true. 

Upon    the    purchase    of    the    land    the    sub- 


152      The  Destiny  of  the  American  City 

divisor's  first  thought  is  the  design,  the  plan  and 
specifications,  so  that  the  dream  picture  may  be 
firmly  rooted  along  practical  lines,  with  all  de- 
tails for  a  progressive  development  carefully 
outlined,  step  by  step,  which  in  course  of  time, 
may  be  transplanted  from  the  intangible  realms 
of  fancy  into  a  thing  of  material  beauty  and 
substantial  reality. 

To  finance,  in  its  entirety,  a  venture  of  this 
kind  in  every  detail,  with  the  least  possible  de- 
lay without  permitting  the  element  of  time  to 
enter  and  work  out  a  gradual  development, 
would  not  be  practical,  even  if  it  were  finan- 
cially possible,  unless  conditions  were  extremely 
favorable  in  order  to  reduce  to  the  minimum 
the  financial  risk  and  hazard. 

In  its  consummation  a  gradual  progressive 
development,  therefore,  is  the  one  usually  fol- 
lowed in  order  to  be  within  the  conservative 
boundaries  of  safety. 

Gutting  through  broad  avenues  and  opening 
up  park  areas  and  other  distinctive  features  of 
the  design,  to  properly  display  the  lay-out  and 
the  different  zones  of  improvement  followed  by 
essential  public  improvements,  to  furnish  pro- 
per access  to  various  parts  and  parcels,  is  the 
first  undertaking. 

The  next  step  is  to  make  the  investment  as 
active  as  possible  by  improving  certain  near-in 
sections  for  immediate  sale,  so  that  the  profit 


The  City  and  the  Tax  Problem         153 

derived  therefrom  may  be  used  to  extend  the 
improvements  into  the  more  remote  areas,  and 
in  that  way  gradually  work  out  the  developing 
scheme  by  taking  the  earnings  of  one  portion 
and  extending  them  to  the  improvements  of 
another. 

The  excess  profit  tax  created  sad  havoc  with 
the  subdivisor's  plans  in  this  regard  by  taking 
from  his  earnings  that  portion  of  his  working 
capital  used  in  the  extension  of  his  improve- 
ments, making  it  impossible  to  go  forward  with- 
out additional  outside  capital. 

To  introduce  outside  capital  is  a  reluctant  and 
oftentimes  difficult  thing  for  the  owner  to  do,  on 
property  from  which  an  adequate  income  is  not 
sufficient  to  take  care  of  the  interest  on  the  in- 
vestment, to  say  nothing  about  the  excessive 
overhead  charges,  combined  with  the  discour- 
agement that  would  be  the  natural  result  of 
such  adverse  conditions. 

Consequently,  throughout  the  country,  on  ac- 
count of  the  operations  of  the  excess  profit  tax, 
we  found  the  expansion  of  our  cities  in  the  out- 
lying districts  had  suddenly  ceased  and  capital 
formerly  used  in  developing  subdivision  prop- 
erty withdrawn  and  owners  patiently  waiting 
for  a  repeal  of  the  excess  profit  tax  before  con- 
tinuing operations  and  marketing  property. 

Likewise,  the  operation  of  the  excess  profit 
tax  has  had  the  same  effect  in  other  lines  of 


154       The  Destiny  of  the  American  City 

industry.  Any  business  organization  earning 
annually  $200,000,  subject  to  excess  profit  tax, 
could  not  turn  back  into  the  industrial  field, 
under  certain  conditions,  more  than  $120,000  of 
this  amount. 

The  industrial  earnings  of  the  United  States, 
ranging  from  $3,500,000,000  to  $5,000,000,000 
annually,  would  mean,  under  the  operation  of 
the  excess  profit  tax,  an  annual  withdrawal  from 
the  industrial  field  from  20  to  60  per  cent  of  this 
huge  amount. 

Money  earned  in  industry  usually  remains  in 
industrial  centers,  loaned  and  reloaned  in  the 
same  congenial  lines  of  investment  for  the  ulti- 
mate good  of  the  industrial  operator.  This  with- 
drawal of  capital  not  only  reduces  dividends, 
but  also  curtails  improvements,  limits  business 
expansion,  discourages  production,  encourages 
unemployment  and  de-energizes  business  gen- 
erally. 

A  chain  is  no  stronger  than  its  weakest  link, 
and  a  country  in  its  economic  structure  no 
stronger  than  the  various  political  units  or  sub- 
divisions of  which  it  is  composed. 

To  rebuild  and  reconstruct  our  country  we 
must  leave  to  the  town,  municipality  and  every 
other  political  subdivision  everything  it  needs 
to  supply  the  nourishment  for  its  self-develop- 
ment, so  far  as  it  is  possible. 

To    divert    this    nourishment    from    natural 


The  City  and  the  Tax  Problem         155 

channels  into  world  streams  of  wide  distribu- 
tion is  as  unwise  as  it  is  unjust,  for  the  reason 
it  takes  away  from  the  unit  that  potential 
strength  so  necessary  to  the  upbuilding  and 
creation  of  a  great  and  growing  nation. 

Experience  is  gradually  teaching  us  that  all 
possible  retroactive  effects  of  proposed  tax  leg- 
islation should  be  picked  out,  carefully  con- 
sidered and  analyzed  in  advance  in  order  to  re- 
tain and  preserve,  so  far  as  possible  our  proper 
economic  balance. 

Over-taxation 

Over-taxation  has  become  a  part  and  parcel 
of  a  nation-wide  outcry  against  local  govern- 
ment expenditure.  Protests  and  complaints 
against  serious  over-taxation  are  reported  far 
and  wide,  from  large  and  small  cities,  farmers 
and  business  men,  everywhere  throughout  the 
land. 

It  is  not  alone  the  billion  dollar  levies  from 
Washington  that  are  engaging  the  attention  now 
of  the  masses,  but  the  near-by  burdens  at  home 
are  making  the  average  citizen  a  close  and 
anxious  student  of  the  subject  of  taxation  as  it 
gradually  approaches  the  border  line  of  con- 
fiscation. 

It  is  now  suggested,  in  order  to  reduce  federal 
taxes,  the  organization  of  taxpayers'  associa- 
tions in  every  township,  village,  city  or  county 


156       The  Destiny  of  the  American  City 

through  which  the  average  citizen  may  make 
effective  his  demand  for  relief  from  mounting 
government  taxes. 

The  position  taken  is  that  it  is  only  by  pres- 
sure from  the  folks  back  home  that  relief  will 
be  secured,  and  in  order  to  make  the  demand  of 
constituents  effective  on  Congress  taxpayers 
must  be  organized. 

The  argument  that  this  would  aid  in  two 
ways  is  extremely  good,  one  that  will  have  a 
more  powerful  direct  effect  on  Congress,  the 
other  that  it  would  provide  opportunity  for 
thorough  study  and  discussion  of  the  whole 
subject  of  taxation  and  give  all  the  people  inter- 
ested a  better  understanding  of  the  matter  at 
issue. 

In  order  to  give  a  more  comprehensive  idea 
of  the  outcry  against  public  expenditure  three 
reports,  one  each  from  the  east,  west  and  middle 
west,  are  given,  showing  how  universal  and 
nation-wide  the  outcry  has  become  and  how  un- 
confined  it  is  to  any  particular  class  or  locality. 
From  the  east  we  quote  Cornelius  Vanderbilt, 
Jr.,  of  Universal  Service,  as  follows: 

"Higher  efficiency  from  working  people, 
greater  economy  from  rich  and  poor  alike,  is 
the  basis  of  permanent  prosperity."  Charles 
M.  Schwab  says  so  and  advises  American  people 
to  follow  this  precept  during  1922. 

Mr.  Schwab,  always  an  optimist,  asserted  the 


The  City  and  the  Tax  Problem         157 

country  has  negotiated  the  rockiest  turns  on  the 
national  business  highway  and  is  well  on  the 
road  to  prosperity. 

"We  don't  want  a  boom,"  he  said.  "We  don't 
want  an  easy,  rapid  inflow  of  money,  for  this 
will  create  short-lived  prosperity.  What  the 
country  does  want  is  a  slow  filling  of  the  sails 
of  the  ship  of  industry.  Commercial  hurricanes 
and  business  squalls  are  not  conducive  to  per- 
manency of  American  business. 

"These  commercial  ups  and  downs  have  a  ten- 
dency to  demoralize  industry.  We  need  a  slow, 
consistent  growth  which  will  prove  a  wall 
against  disastrous  reactions.  Barometrical  rises 
and  falls  are  not  only  unwise  but  injurious  to 
the  country. 

"An  important  problem  is  proper  taxation  of 
people  engaged  in  business  that  will  permit 
usual  initiative  in  business,  so  that  our  financial 
and  industrial  leaders  will  be  encouraged  to 
proceed,  as  in  years  gone  by,  instead  of  putting 
their  money  into  tax-exempt  securities. 

"Business  must  be  freed  from  taxation  to 
make  it  appealing  to  the  small  business  man 
and  to  men  with  large  visions  for  the  future. 
Our  young  business  men  must  not  be  denied 
those  opportunities  that  in  the  past  have  raised 
American  business  to  a  high  state  of  achieve- 
ment. Ruinous  over-taxation  is  destructive  to 
these  ideals." 


158       The  Destiny  of  the  American  City 

From  the  west  we  quote  the  Breeders*  Gazette 
on  the  high  cost  of  government,  which  also  in- 
cludes a  quotation  from  a  country  weekly  pub- 
lished in  Kansas,  as  follows: 

"Next  in  importance  to  complete  deflation  of 
war  wages  in  all  lines  of  industry  and  deflation 
of  railway  freights  comes  deflation  of  public  ex- 
penditures. For  the  last  twenty  years  there  has 
been  a  perfect  mania  for  creating  new  offices, 
new  boards,  new  commissions,  new  bureaus, 
until  we  see  today  the  hand  of  government  and 
in  this  country  that  means  usually  the  hand  of 
the  professional  politician  in  nearly  everybody's 
business  and  everybody's  pocket  to  an  extent 
that  seriously  represses  new  enterprise  and 
stifles  individual  initiative." 

An  amusing,  and  of  course  overdrawn  picture 
of  the  situation,  as  it  affects  even  purely  agri- 
cultural districts,  appears  in  a  copy  of  a  typical 
country  weekly  newspaper  published  in  Kansas, 
the  Paola  Spirit,  as  follows: 

"Fate  seems  to  have  made  the  year  of  1921 
extravagant  in  its  trials,  sieges,  besetments,  de- 
mands, commands,  taxation,  robberies,  bank- 
ruptcies, thefts,  diphtheria,  smallpox,  etc.  The 
average  home  has  been  overrun  with  solicitors, 
beggars,  government  officers,  state  officials,  in- 
quisitors, promoters,  peddlers,  and  busybodies. 
A  special  car  of  the  state  health  board,  in  charge 
of  a  richly  gowned  and  jeweled  young  woman, 


The  City  and  the  Tax  Problem         159 

came  to  town  not  long  ago  and  mothers  were 
commanded  to  hurry  to  the  depot  and  take  in- 
structions as  to  how  to  raise  their  babies;  then 
came  a  government  nurse,  another  unmarried 
lady,  weighing  the  babies  and  instructing  the 
mothers  the  sort  of  infants  they  must  give  birth 
to  hereafter  or  quit  the  business;  and  now 
farmers  are  notified  that  they  must  pay  a 
specialist  from  one  of  our  higher  institutions  of 
learning  to  tell  them  how  to  feed  the  hogs. 

"Safe  to  say  there  are  in  Miami  county  today 
500  officials,  national,  state,  county,  township, 
city,  and  district,  telling  the  people  what  they 
must  do  and  what  they  can't  do;  spying  into 
their  homes,  their  private  accounts,  their 
methods  of  life,  laying  down  the  law  as  to  what 
they  shall  eat,  drink,  wear,  buy  or  spend;  where 
they  shall  go,  and  when;  to  bare  their  arms  for 
vaccination,  show  the  baby's  back,  recount  all 
family  diseases,  tell  the  inspecting  nurse  where 
you  sleep  and  why  married  or  why  single;  show 
up  your  bank  account,  your  debts,  your  tooth- 
brush, and  a  record  of  the  number  of  days  your 
child  has  attended  school  the  last  month. 

"Upstandingly  and  outstandingly  the  average 
men,  women,  and  children  are  exploited,  re- 
strained, assessed,  directed,  advised,  prohibited, 
mulcted,  admonished,  threatened,  examined, 
criticized,  prayed  for  and  preyed  upon,  until 
they  are  about  ready  to  do  as  the  masses  did 


160       The  Destiny  of  the  American  City 

in  England  seven  hundred  years  ago,  run  into 
caves  and  rudely  chalk  on  the  outer  walls,  'No 
money;  no  religion!'" 

Seriously,  have  we  not  been  overdoing  this 
government  intervention  in  private  business? 

From  the  middle  west  we  quote  the  Urbana 
(Illinois)  Courier  of  recent  date  as  follows: 

"The  taxing  authorities,  from  the  state  down 
to  the  school  district,  will  do  well  to  call  a  halt. 
In  a  period  of  business  depression,  almost  with- 
out exception,  they  have  voted  increased  tax 
rates.  With  the  value  of  farm  lands  cut  in  two ; 
with  hundreds  of  farm  tenants  either  potentially 
or  actually  bankrupt;  with  returns  from  field 
and  pasture  hardly  sufficient  to  pay  taxes  and 
interest;  with  many  a  workman  in  the  cities  idle 
for  lack  of  a  job;  with  prices  on  practically 
everything  else  in  the  world  dropping,  the  cost 
of  state,  county,  city  and  school  government  goes 
steadily  up. 

"It  is  time  to  call  a  halt. 

"When  times  are  good  we  may  not  like  to  pay 
taxes,  but  it  is  possible  and  practicable  to  do  so. 
When  times  are  as  they  are  today,  in  the  case 
of  many  a  property  owner  high  taxes  amount 
to  confiscation. 

"The  trouble  is  not  altogether  with  the  tax 
fixing  bodies.  The  fundamental  difficulty  is  the 
continuous  effort  to  saddle  on  to  the  public 
treasury  one  innovation  after  another,  each  of 


The  City  and  the  Tax  Problem         161 

which  adds  to  the  tax  rate  and  provides  addi- 
tional jobs  of  a  more  or  less  soft  nature.  When- 
ever any  new  scheme  is  proposed  for  promot- 
ing the  public  weal,  you  may  rest  assured  that 
it  will  eventually  take  the  form  of  added  taxes. 
Do  we  pension  the  police?  We  pay  for  it  in 
more  taxes.  Do  we  pension  the  fire  depart- 
ment? The  money  for  that  comes  out  of  your 
pocket,  in  addition  to  what  you  are  already  pay- 
ing. Do  we  inaugurate  a  new  zoning  system? 
Well,  if  we  do  we  will  pay  a  pretty  penny  for 
that,  and  your  tax  rate  will  go  up  again. 

"Neither  the  city  council,  the  school  board, 
nor  the  board  of  supervisors  can  perform  mira- 
cles. If  you  will  have  this  additional  service 
you  must  pay  the  piper. 

"We  constantly  kick  because  our  schools  are 
no  better,  and  then  jump  on  the  board  if  it 
tries  to  make  them  better  in  the  only  way  it 
can, — by  spending  more  money  out  of  your 
pocket. 

"If  we  criticize  the  city  because  some  parts 
of  town  are  not  better  lighted,  or  because  in- 
sufficient police  protection  is  provided,  or  if  the 
streets  are  not  always  clean,  or  any  other  thing 
of  this  nature,  we  have  no  one  but  ourselves  to 
blame  if  the  attempt  is  made  to  supply  what  is 
demanded,  and  the  bill  eventually  finds  its  way 
to  father  at  tax-paying  time. 

"Last  summer  we  voted  to  organize  a  new 

11 


162      The  Destiny  of  the  American  City 

sanitary  sewer  district.  It  may  be  that  such  a 
thing  is  imperative.  Whether  it  was  or  not  we 
are  sure  of  this:  It  added  22c  to  the  tax  rate. 
We  voted  it  on  ourselves,  so  whom  shall  we  turn 
our  wrath  upon  in  this  instance? 

"We  repeat.  The  trouble  is  not  with  our  tax- 
fixing  bodies,  but  with  our  own  intemperate  and 
ill-considered  demands.  We  are  like  a  child 
at  the  circus,  we  want  everything  we  see.  When- 
ever any  one  suggests  a  new  way  of  spend- 
ing money,  we  are  for  it.  To  be  against  it  is  to 
be  unprogressive  and  a  mossback. 

"Some  may  point  out  that  the  Courier  should 
be  the  last  to  kick  about  this  spending  orgy, 
since  it  has  favored  so  many  of  these  proposals 
itself,  and  has  been  insistent  upon  public  im- 
provements, no  matter  whether  prices  were  high 
or  low.  To  some  extent  this  is  true,  as  it  felt 
that  there  were  some  improvements  so  essen- 
tial that  we  could  not  get  along  without  them. 
But  a  great  majority  of  the  innovations  of  the 
last  few  years  that  have  caused  our  tax  rate  to 
swell  to  such  volume,  the  Courier  has  neither 
advocated,  nor  favored,  but  has  actually  op- 
posed. 

"But  it  isn't  a  question  of  whether  the  Courier 
was  right  or  wrong  in  the  past.  It  is  a  question 
of  what  we  are  to  do  in  the  future;  what  our 
attitude  will  be  toward  new  proposals  calculated 
to  suck  blood  money  out  of  the  public  breast. 


The  City  and  the  Tax  Problem         163 

It  is  a  serious  question  whether  many  people 
can  pay  the  taxes  now  assessed  against  them.  It 
would  be  the  height  of  folly  to  drive  great  num- 
bers of  people  into  bankruptcy  or  cause  them 
to  lose  their  property  because  they  could  not 
pay  taxes. 

"This  is  the  time  to  reduce  taxes,  not  to  in- 
crease them. 

"It  is  the  time  to  call  a  halt" 

Coincident  with  periods  of  depression,  we  find 
a  wave  of  profligate  expenditure  of  public 
money  takes  possession  of  certain  classes,  ap- 
parently without  a  full  realization  of  the  fact 
that  somewhere  along  the  line  somebody  must 
pay  the  bill. 

It  is  oftentimes  quite  noticeable  upon  the  part 
of  present-day  advocates  of  high  taxation  that 
much  more  stress  is  made  in  spectacular  efforts 
to  get  the  money  than  in  the  more  tedious 
routine  of  how  to  economically  use  it  after  it 
is  gotten. 

There  are  many  thrifty  people  assuming 
leadership  in  public  affairs  of  today  advocating 
the  use  of  all  their  earnings  in  the  activities  of 
the  present  day  expenditures  of  life,  relying  on 
the  protection  of  the  family  to  the  life  insurance 
company,  or  the  providential  windfalls  of  the 
future,  thereby  enjoying  the  results  of  their 
earnings  in  the  heyday  of  youth,  feeling  confi- 
dent and  secure  in  the  protection  thus  provided. 


164      The  Destiny  of  the  American  City 

This  theory,  for  the  individual  and  his  appli- 
cation of  it  to  governmental  affairs,  would  un- 
doubtedly be  good  while  the  going  was  good, 
but  extremely  bad  when  the  going  happened  to 
be  bad.  If  perchance  such  a  theory  should  ever 
become  the  universal  rule,  it  would  surely  place 
a  very  grave  responsibility,  not  only  on  Provi- 
dence, but  on  the  insurance  companies  of  the 
land  as  well. 

In  that  event  it  would  be  extremely  difficult 
to  figure  out  in  what  way  the  great  reservoirs 
of  wealth  would  be  created  to  tide  it  through 
the  inevitable  days  of  depression,  always  sure 
to  come,  into  a  stable  and  more  prosperous 
period  rather  than  fall  into  the  pit  by  the  way- 
side from  the  first  cold  blast  of  adversity. 

Tax-Exempt  Securities 

It  is  found  that  capital  has  been  withdrawn 
from  industry  in  great  quantities,  not  only  in  this 
manner,  by  the  operation  of  the  excess  profit  tax, 
but  also  by  the  issuance  of  tax-free  securities. 

Economists  tell  us  that  the  increase  of  free- 
tax  securities  by  the  state,  county  and  munici- 
palities amounted  to  over  $1,300,000,000  in  1921, 
and  that  already  ten  billion  dollars  of  American 
money  had  gone  into  free-tax  bonds,  and  in  a 
few  years  it  is  predicted  that  thirty  billion  will 
be  withdrawn  from  the  productive  industry  and 
placed  in  safety  deposit  vaults. 


The  City  and  the  Tax  Problem  165 

If  this  continues  a  short  time  we  will  have  so 
large  a  part  of  the  income  of  the  citizens  of  the 
United  States  invested  in  these  states  and  local 
tax-exempt  securities  that  the  government  will 
have  to  increase  the  rate  of  income  tax  to  un- 
heard of  figures.  The  drift  of  wealth  into  non- 
taxable securities  is  hindering  the  flow  of  capital 
into  industries,  manufactures  and  agriculture, 
until  we  are  discouraging  the  very  activities  that 
are  making  our  wealth. 

We  are  also  reminded  that  to  prohibit  the 
issuance  of  tax-exempt  bonds  by  constitutional 
amendments  would  require  years,  giving  time 
to  issue  more  securities,  and  that  if  a  national 
law  were  possible  it  would  be  difficult  to  make 
it  constitutional;  so  with  more  or  less  anxiety 
the  nation  is  watching  and  wondering  what  form 
of  weapon  the  government  may  use  to  destroy 
the  enemy  that  is  sucking  dry  the  industrial 
fount. 

Tax-exempt  securities  take  away  that  poten- 
tial power  so  essential  to  industrial  activity, 
increases  the  value  of  municipal  and  state- 
exempt  bonds  and  becomes  a  safety  box  for 
hidden  wealth,  or  as  another  appropriately 
calls  it,  "A  vault  for  dead  money,  therefore  a 
detriment  to  the  wage  earner." 

"Municipalities,  precincts  and  corporations," 
says  Sinclair  Moss,  "have  been  tempted  into 
issue  of  bonds  for  public  purposes  far  beyond 


166      The  Destiny  of  the  American  City 

the  natural  ability  to  pay,  because  the  reservoirs 
of  money  were  waiting  to  be  tapped." 

The  consequence  of  high  incomes  on  one  hand 
and  tax-free  securities  on  the  other  naturally 
begets  the  most  colossal  tax  dodging  system  ever 
established  on  a  national  scale,  with  the  grow- 
ing tendency  of  driving  rich  men  engaged  in 
productive  industry  into  retirement  and  idle- 
ness. 

Taxes  and  Rentals 

By  the  issuance  of  tax-free  securities  it  is 
found  in  the  settlements  of  a  number  of  very 
large  estates  that  incomes  have  been  increased 
in  some  cases  as  high  as  $500,000  annually  by 
merely  disposing  of  industrial  and  other  taxable 
securities  and  reinvesting  in  tax-exempt  bonds. 

It  must  be  remembered  that  a  dollar  invested 
in  tax-free  securities  ceases  automatically  to 
contribute  to  local  state  and  federal  government 
costs,  forcing  the  burden  on  realty  and  other 
tangible  and  intangible  property. 

It  is  said  that  the  loss  to  the  government  from 
tax  exemptions  amounts  to  about  six  hundred 
million  dollars  annually,  and  that  when  the 
amount  of  tax-exempt  bonds  equal  the  value  of 
farm  land  of  the  nation,  it  means  that  even  an 
acre  of  farm  land  will  be  carrying  approxi- 
mately a  double  taxation. 

The  money  that  goes  into  tax-free  securities, 
it  is  seen,  can  not  be  used  for  business  or  farm- 


The  City  and  the  Tax  Problem         167 

ing  purposes.  That  is  the  reason  we  see  cities 
and  states  carrying  extensive  and  oftentimes 
extravagant  programs  of  public  improvements 
during  periods  when  individuals  in  industry 
and  farming  find  it  difficult  to  procure  funds 
to  keep  business  going,  forcing,  by  official  au- 
thority, realty  owners  into  an  abnormally  high 
construction  market  in  the  purchase  of  material 
and  labor  which  the  officials  themselves  would 
be  very  reluctant  to  enter  on  their  own  account. 

From  the  Fargo  Forum  on  the  subject,  why 
rents  are  high  and  about  things  wage  earners 
ought  to  know,  the  following  is  quoted : 

"Many  factors  enter  into  the  rental  situation, 
but  there  are  two  outstanding  causes  which 
continually  present  themselves.  These  are  the 
high  taxes  and  the  tax-exempt  securities  which 
have  flooded  the  investment  markets. 

City,  school,  state  and  federal  taxes  have  been 
increasing  at  such  a  rate  during  the  last  ten  or 
twenty  years  that  it  probably  would  amaze  the 
average  man  to  know  how  much  of  his  working 
time  is  devoted  to  earning  money  enough  to 
pay  them.  With  a  federal  budget  of  $3,000,000,- 
000,  every  man,  woman  and  child  pays  an  aver- 
age of  $30  a  year  in  federal  taxes  alone.  For 
a  man  with  a  family  of  five  that  means  $150  a 
year.  Add  the  municipal,  school  and  state  taxes 
to  that  and  the  total  sum  becomes  somewhat 
staggering. 


168      The  Destiny  of  the  American  City 

"On  top  of  this  crushing  increase  in  taxes 
come  billions  of  tax-exempt  securities.  The  re- 
sult is  inevitable.  The  man  who  has  any  sur- 
plus money  hunts  for  tax-exempt  securities. 

"That  means  that  investments  in  buildings 
have  to  compete  with  these  tax-exempt  bonds. 
A  gross  return  of  15  per  cent  on  a  building  is 
not  exorbitant  when  allowance  is  made  for 
taxes,  repairs,  and  upkeep.  That  means  $900 
a  year  for  a  $6,000  house. 

"And  yet  the  average  workingman  on  a  small 
salary  or  working  for  day  wages  does  not  realize 
that  such  things  as  taxes  and  tax-exempt  securi- 
ties mean  anything  to  him.  He  figures  he 
doesn't  have  to  pay  taxes  anyway,  and  that  the 
rich  man  'should  worry'  about  such  matters. 

"You  can't  drive  capital  into  unprofitable 
lines.  It  must  be  coaxed.  You  can't  legislate 
it  into  Unattractive  channels.  For  years  dema- 
gogues have  found  it  a  popular  cry  to  'soak  the 
landlords.'  The  landlords  have  grown  tired  of 
being  'soaked'  and  the  number  of  them  is  de- 
creasing instead  of  increasing.  They  are  put- 
ting their  money  into  tax-exempt  bonds  instead 
of  into  apartment  buildings  and  houses  to  rent, 
because  they  get  as  big  or  bigger  returns  with 
greater  safety  and  complete  freedom  from  worry 
about  new  tax  laws  that  may  be  passed. 

"Hundreds  of  self-respecting,  hard-working 
citizens  are  finding  it  almost  impossible  to  pay 


The  City  and  the  Tax  Problem  169 

the  rents  demanded  for  quarters  which  are 
hardly  fit  for  human  habitation,  and  which  cer- 
tainly offer  nothing  in  the  way  of  comforts,  to 
say  nothing  of  luxuries." 

Tax  on  Realty 

Real  estate  will  ever  be  made  to  carry  the 
burdens  of  taxation,  for  the  reason  it  can  not 
be  placed  in  hidden  recesses  in  escaping  tax 
assessments,  but  is  always  in  the  open,  vulner- 
able to  all  attacks. 

Whenever  over-taxation  approaches  close  to 
the  border  line  of  confiscation  so  as  to  make 
strong  inroads  on  the  income  of  real  estate, 
with  strong  possibilities  of  absorbing  portions 
of  the  original  investment,  the  owner  fully  un- 
derstands and  realizes  more  than  anyone  else 
that  it  means  only  one  thing,  and  that  is  depre- 
ciation in  the  value  of  real  property. 

The  importance  of  increasing  taxation  on 
realty  must  not  be  overlooked  in  its  effects  on 
rentals,  as  well  as  on  building  construction  in 
retarding  the  flow  of  capital  toward  the  build- 
ing industry. 

Builders  and  investors  realize  whenever  taxes 
are  once  levied  they  become  fixed  and  are  very 
seldom  reduced,  but  more  likely  to  be,  unremit- 
tingly, increased,  while  on  the  other  hand  the 
revenue  and  income  from  buildings  fluctuate 
and  are,  more  or  less,  subject  to  depreciation 
without  warning. 


170      The  Destiny  of  the  American  City 

It  is  contended  that  in  the  State  of  Illinois  the 
valuation  of  tangible  and  intangible  property 
is  somewhere  between  twenty-five  and  thirty- 
five  billion,  some  placing  it  as  high  as  fifty  bil- 
lion, and  that  if  all  property  were  taxed  with- 
out discriminations,  the  tax  rate  would  be  very 
low.  There  seems  to  be  a  reluctance  in  placing 
too  high  a  rate  upon  intangible  property,  or  in 
adopting  such  methods  as  will  bring  intangible 
property  under  the  searchlight  of  the  assessor. 

The  reasons  advanced  why  it  is  wrong  to  tax 
intangibles  at  the  same  rate  of  tangible  prop- 
erty are  quite  numerous,  comprising  in  the  main 
the  following:  It  would  be  double  taxation;  it 
would  prevent  business  in  carrying  large  reser- 
voirs of  liquid  assets,  forcing  money  out  of  bank 
deposits,  damaging  building  and  loan  associa- 
tions, and,  unlike  tangible  property,  its  value  is 
specified  and  more  definitely  fixed,  making  it 
possible  for  assessors  to  assess  at  full  market 
value,  whereas  in  real  estate,  which  carries  no 
definite  fixed  value,  it  would  receive  a  lower 
valuation,  therefore  intangibles  should  be 
assessed  at  a  much  lower  rate. 

In  the  State  of  Illinois,  for  the  last  three  years, 
the  assessment  valuation  has  been  fixed  on  the 
basis  of  one-half  the  full  valuation  instead  of 
one-third,  as  in  former  years. 

In  looking  over  the  assessed  valuation  for  the 
last  few  years  of  a  number  of  Illinois  cities, 


The  City  and  the  Tax  Problem         171 

it  is  found  that  while  the  tax  rate,  in  the  start, 
on  the  one-half  valuation  plan,  was  little  lower 
than  it  was  under  the  one-third  valuation  plan, 
the  general  taxes  in  the  aggregate  were  higher; 
but  in  the  last  two  years  the  rate  has  also  in- 
creased in  some  instances,  being  a  great  deal 
higher  than  the  very  highest  rate  under  the 
one-third  valuation  plan. 

It  is  found  that  taxes  on  city  realty  have  not 
only  been  increased  by  increasing  the  valuation 
from  one-third  to  one-half,  but  at  the  same  time 
increasing  the  rate  under  this  plan  so  the  rate 
now  stands,  in  some  instances,  15  to  20  per  cent 
higher  than  it  did  under  the  old  one-third 
valuation  plan. 

For  this  reason  the  public  is  becoming  more 
or  less  skeptical  over  increased  taxation  propa- 
ganda, although  it  does  not  seem  to  be  quite 
awake  to  the  full  significance  of  the  fact  that 
in  obtaining  legislation  to  increase  the  basis  of 
the  valuation  of  taxation  to  one-half  instead  of 
one-third,  it  was  gotten  through  on  the  theory 
that  the  rate  of  taxation  would  be  lower  and 
the  general  tax  not  materially  increased. 

This,  however,  has  not  worked  out  in  prac- 
tice, but  found  to  be  only  a  stepping  stone  for 
further  tax  increase,  and  every  step  so  far  taken 
has  increased  taxation  and  fixing  a  still  higher 
rate  from  which  there  seems  to  be  no  immediate 
recession. 


172       The  Destiny  of  the  American  City 

Creating  entering  wedges  in  this  manner, 
taxation  has  gradually  crept  up  within  the  last 
few  years  without  much  knowledge  on  the  part 
of  the  general  public  just  what  was  going  on 
until  it  was  all  over,  later  forgotten,  to  be  re- 
peated in  a  similar  fashion  and  so  on  indefi- 
nitely. 

The  endless  chain,  thus  continues  unremit- 
tingly, until  a  point  is  reached  when  something 
must  happen  before  any  substantial  correction 
can  be  made.  Rather  an  extravagant  and  ex- 
pensive drifting  program  to  follow,  but  one 
which  apparently  cannot  be  reached  and  reme- 
died in  any  other  way  until  the  indifference  and 
apathetic  condition  of  the  public  is  finally 
aroused. 

The  inequities  of  these  forced  contributions 
oftentimes  result  in  retaliation  that  directly  or 
indirectly  shifts  the  burden  back  upon  the 
shoulders  of  those  least  able  to  pay. 

In  order  to  show  how  the  rate  of  taxation  is 
apportioned,  we  give  below  a  diagram  selected 
from  a  dozen  cities  in  the  country  of  15,000 
population  and  which  will  give  a  good  idea  of 
the  relative  importance  of  each  item  that  goes 
to  make  up  the  aggregate  amount  that  the  tax- 
payer is  contributing  in  the  maintenance  of  the 
different  items  of  public  expenditure. 

In  showing  this  table  of  itemized  tax  rates, 
it  is  done  to  give  a  better  idea  of  how  the  tax 


The  City  and  the  Tax  Problem  173 


rate  is  made  up  and  what 
the  list  is  forcing  the  rate 
point. 


particular  item  on 
to  its  present  high 


1917 

1918 

1919 

1920 

1921 

1922 

Percentage   of   val- 
uation     

% 

y3 

Vs 

y2 

% 

% 

Annual  Valuation 

State    

County 

Town 

$0.90 
.41 
.05 
.50 

1.65 
.10 

2.98 

.75 
.44 
.08 
.40 

1.67 
.10 

3.00 

.40 
.29 

.36 
1.62 

.07 
2.67 

.40 
.50 

.40 
1.70 

2.67 

.45 
.75 
.07 
.36 
.78 
.07 
2.75 
.22 

.45 
.75 

.07 

Roads  and  Bridges 
City 

.36 

1.78 

Park    

School    

.07 
4.00 

Sanitary  District.  . 

.22 

Total   rate 

$6.59 

6.44 

5.41 

5.67 

6.45 

7.70 

The  above  table  shows  three  years  of  taxation  with  the 
percentage  of  valuation  figured  at  one-third,  and  three 
years  figured  at  one-half.  It  shows  that  taxes  have  been 
increased  by  raising  the  valuation  from  one-third  to  one- 
half,  and  that  after  so  doing  the  total  rate  of  taxation  has 
been  advanced  so  that  now  under  the  one-half  valuation 
plan,  it  exceeds  the  highest  rate  under  the  former  valua- 
tion of  one-third. 

Also  for  the  purpose  of  studying  what  method 
of  economic  and  efficient  management  may  be 
employed  to  gradually  reduce  the  tax  rate  and 
bring  it  back  to  its  normal  position. 

From  the  foregoing  table  it  will  be  seen,  in 
making  up  the  rate  of  taxation  for  the  year  1922, 
out  of  nine  different  items  that  composed  it  and 
makes  up  the  rate  of  $7.70,  that  $4.00,  or  over 
one-half  of  the  whole  amount,  is  the  one  item  of 
school  tax. 


174      The  Destiny  of  the  American  City 

It  is  nothing  more  than  natural,  therefore, 
that  the  school  rate,  being  so  high,  will  attract 
more  or  less  attention  on  the  part  of  the  public 
in  any  critical  analysis  of  the  taxation  problem 
that  will  be  made  from  now  on,  not  for  the  pur- 
pose of  taking  away  from  the  school  anything 
it  may  need  and  should  have,  but  more  as  to 
how  the  fund  is  managed  and  to  what  extent 
the  application  of  good  common  sense  business 
methods  may  be  applied  in  the  handling  of  ex- 
penditures, and  to  satisfying  the  public  that  this 
is  being  done. 

Upon  top  of  all  this,  every  four  years  the  tax 
on  realty  may  be  further  increased  by  the  re- 
assessment of  the  property  and  increasing  the 
assessed  valuation. 

All  of  which  goes  along  merrily,  with  the 
public  hardly  realizing  it,  for  what  is  the  use  of 
blighting  the  pleasures  of  today  with  the  fright- 
ful nightmare  of  taxation  of  tomorrow? 

It  is  a  universal  experience,  as  exemplified  in 
the  above,  that  all  taxing  bodies  tend  to  use  all 
the  money  they  can  raise,  and  it  would  be  a 
short  time  until  each  tax  authority  was  again 
levying  the  limit,  even  though  at  first  the  assess- 
ments were  so  large  that  a  lower  rate  would 
produce  more  revenue  than  it  now  used.  As 
one  of  our  Illinois  legislators  puts  it,  "from  all 
indications  taxes  are  going  to  increase  instead 
of  diminish  if  the  state  is  to  continue  to  go  into 


The  City  and  the  Tax  Problem         175 

the  various  more  or  less  socialistic  enterprises 
upon  which  they  seem  to  be  embarked."  Each 
new  enterprise  that  comes  along,  taking  more 
taxation,  seems  in  itself  to  be  a  very  good  thing, 
and  members  of  the  legislature  as  well  as  good 
citizens  generally  dislike  to  fight  them.  But  a 
halt  must  be  called  somewhere.  We  must  urge 
greater  efficiency  generally  with  higher  standard 
of  efficiency  among  public  officials,  and  a  refusal 
to  go  into  any  further  fields  of  governmental 
activities. 

The  result  must  be,  if  this  continues,  in  the 
rapid  withdrawal  of  wealth  from  real  property 
and  re-invested  in  intangibles,  and  more  espe- 
cially of  the  tax-free  variety,  which  would 
naturally  lessen  the  rapid  growth  of  the  city  in 
destroying  the  incentive  of  builders  to  build. 

The  effects  of  over-taxation  on  building  con- 
struction would  be  in  a  measure  overcome  if 
the  state  would  pass  a  law  similar  to  the  one 
now  in  vogue  in  the  state  of  New  York,  exempt- 
ing new  dwellings  from  taxation  for  a  certain 
period. 

By  granting  this  exemption  it  would  go  just 
that  far  toward  offsetting  the  present  abnormal 
cost  of  a  portion  of  building  construction  owing 
to  high  cost  of  labor  and  material. 

For  instance,  if  the  assessed  valuation  of  a 
certain  building  is  $1,000  and  the  rate  is  $7.80, 
the  general  tax  will  be  $78,  which  amount  rep- 


176       The  Destiny  of  the  American  City 

resents  the  interest  on  $1,125  at  7  per  cent,  or 
on  $1,300  at  6  per  cent. 

If  a  building,  on  account  of  the  high  cost  of 
labor  and  material,  should  figure  out  to  cost 
$2,500  more  than  in  normal  times  and  the  pre- 
vailing rate  of  interest  was  7  per  cent,  by  deduct- 
ing $1,125  from  this  excess  cost  of  $2,500  it 
would  leave  $1,375,  which  under  this  tax-exemp- 
tion law  would  represent  the  net  excess  build- 
ing cost  at  the  present  time.  If  the  prevailing 
interest  rate  is  6  per  cent,  this  deduction  would 
be  $1,375  instead  of  $1,125. 

The  effects  of  such  a  law  would  be  one  more 
inducement  for  the  builder  to  build,  and  one 
encouragement  more  for  the  purchaser  to  buy. 
It,  no  doubt,  would  encourage  construction 
work  in  many  instances  that  would  be  other- 
wise indefinitely  postponed. 

In  the  final  analysis,  after  making  a  careful 
survey  of  the  taxation  problem,  in  all  its  rela- 
tions to  real  property,  one  is  almost  forced  to 
ask  the  question,  are  we  insidiously  and  un- 
consciously drifting  toward  the  Henry  George 
single-tax  theory  in  forcing  tangible  property  to 
stand  all  the  burden  of  taxation?  Is  it  possible 
that  those  in  charge  of  legislation  are  deftly 
guiding  the  ship  of  state  in  that  direction? 

If  such  a  thing  could  really  happen  the 
growth  of  our  cities  would  surely  be  further  re- 
tarded by  destroying  the  incentive  of  the  in- 


The  City  and  the  Tax  Problem  111 

dividuals  who  have  pioneered  the  expansion  of 
our  great  cities,  which  have  become  the  marvel 
of  the  world,  in  converting  barren  acreage  into 
improved  urban  property. 

This  would  not  have  been  done  if  it  were 
forced  to  carry  all  the  burden  of  taxation,  on 
account  of  the  great  hazard  and  excessive  over- 
head, entailed  during  years  of  developing  that 
it  would  necessarily  take  to  bring  it  up  to  a  cer- 
tain point  of  perfection  for  future  marketing. 

School  Tax 

There  is  always  a  natural  reluctance,  on  the 
part  of  the  public,  in  making  any  organized  ef- 
fort to  combat  tax  levies  for  school  purposes  for 
several  reasons. 

In  the  first  place  everybody  is  for  the  better- 
ment of  the  public  school,  without  much  regard 
as  to  cost.  Anything  that  raises  the  standard 
of  the  American  citizen  educationally  gets  a  re- 
sponse from  every  true  American,  for  the  rea- 
son on  this  particular  issue  America  has  dedi- 
cated her  very  best  endeavor. 

In  the  second  place  the  voter,  having  only  a 
small  amount  of  taxable  property,  does  not  feel 
disposed  to  assume  this  responsibility,  and  the 
voter  who  has  a  large  amount  of  taxable  prop- 
erty and  who  is  elected  to  pay  most  of  the  school 
costs  does  not  care  to  subject  himself  to  the 
embarrassment    and    possible    humiliation    of 

12 


178       The  Destiny  of  the  American  City 

being  classified  as  unprogressive,  however 
strong  his  disposition  may  be  to  do  so,  from  an 
economic  viewpoint,  or  how  much  he  may  be 
justified  in  objecting  to  profligate  waste  in 
school  management. 

Consequently  we  find  on  account  of  the  in- 
difference on  the  part  of  one  class  and  fear  of 
embarrassment  on  the  part  of  another,  ques- 
tionable legislation  is  oftentimes  forced  upon 
the  public,  and  excessive  tax  levies  pushed 
through  by  their  proponents  without  giving 
proper  consideration  and  analysis  to  possible 
secondary  effects,  against  which  little  or  no  con- 
structive criticism  is  offered  by  those  in  position 
to  know. 

Public  school  taxation  should  be  voted  for 
liberally.  There  is  no  disposition  on  the  part 
of  the  American  public  to  lower  the  educational 
standard  of  the  country,  even  during  periods  of 
depression  and  over-taxation. 

We  feel  justified,  therefore,  in  treating  the 
subject  here  as  of  utmost  importance  in  its  bear- 
ings upon  the  destiny  of  the  American  city. 
Municipal  taxation  in  its  present  upward  ten- 
dency, a  great  portion  of  which  is  made  up  of 
school  tax  levies,  should  be  given  more  than 
casual  consideration  and  study  by  the  local 
economist  in  every  community  in  order  to  get 
as  low  a  rate  of  taxation  as  possible,  consistent 
with  good  government  and  efficient  service  in 
all  departments. 


The  City  and  the  Tax  Problem         179 

School  Tax  Laws 

In  looking  over  the  school  laws  of  the  various 
states  a  very  strong  tendency  toward  increasing 
the  rate  of  taxation  for  school  purposes  is  found 
all  along  the  line. 

In  the  State  of  Illinois,  in  June,  1921,  the  pro- 
visions of  the  school  law  were  amended,  giving 
school  districts  the  right  to  vote  a  4  per  cent  tax 
rate. 

Under  this  amendment  the  board  of  education 
has  authorized  to  levy  a  tax  not  exceeding  the 
rate  voted,  3  per  cent  for  educational  and  1  per 
cent  for  building  purposes,  or  such  part  thereof 
as  they  deem  necessary  to  maintain  the  schools. 
This  authority  continues  and  may  be  used 
annually  until  such  time  as  another  similar  elec- 
tion again  changes  the  rate  authorized. 

The  proponents  of  this  law  contend  that  the 
increase  in  the  rate  is  necessary  to  give  the 
unit  control  districts,  maintaining  both  elemen- 
tary and  high  school,  authority  to  spend  at  least 
one-half  as  much  for  elementary  and  high 
schools  as  can  be  spent  in  districts  or  cities  of 
the  same  class,  except  that  they  have  separate 
organizations  in  control  of  elementary  and  high 
schools. 

Since  this  law  was  passed  a  few  cities  in  the 
state  have  been  able  to  increase  their  school  rate 
up  to  the  maximum  as  provided  by  the  amend- 
ment. 


180       The  Destiny  of  the  American  City 

It  is  further  contended  that  a  great  majority 
of  the  cities  in  the  state  have  been  forced  to  the 
less  desirable  dual  system  of  control  in  order  to 
secure  sufficient  funds  to  run  good  schools,  and 
that  most  of  the  unit  control  districts  will  doubt- 
less be  compelled  in  time  to  do  either  the  same 
thing  or  at  least  to  use  the  full  4  per  cent  rate 
allowed  to  them  under  their  present  organiza- 
tion. 

It  is  also  pointed  out  that  there  are  a  few 
small  cities  in  Cook  county  that  are  paying  as 
much  for  the  support  of  the  elementary  schools 
alone  as  the  maximum  paid  elsewhere  under 
the  new  law. 

The  proponents  also  contend  that  any  com- 
munity that  maintains  schools  on  a  lower  rate 
than  4  per  cent  is  likely  either  to  have  to  be 
contented  with  poorer  schools  or  to  have  more 
property  valuation  in  proportion  to  the  average 
cost  of  grade  schools  and  high  school  pupils, 
and  this  is  possible  in  one  of  several  ways :  first, 
if  there  is  a  larger  amount  of  taxable  property 
in  proportion  to  the  number  of  children  in  the 
community;  second,  if  the  property  is  more 
nearly  all  found  in  the  process  of  assessment; 
third,  if  the  educational  sentiment  of  the  com- 
munity is  so  low  that  a  comparatively  small 
number  of  children  have  to  be  taken  care  of  in 
the  school,  very  few  communities  having  as 
many  of  their  young  folks  in  the  high  schools; 


The  City  and  the  Tax  Problem         181 

fourth,  when  a  larger  proportion  of  the  children 
are  cared  for  in  private  schools  and  so  are  not 
paid  for  from  the  public  fund. 

Under  any  one  of  these  conditions  it  is  con- 
tended that  it  might  be  possible  to  maintain 
equally  good  schools  at  a  slightly  smaller  tax 
rate. 

In  this  argument  it  is  seen  that  the  authority 
to  use  the  4  per  cent  rate  continues  and  may  be 
used  annually  until  such  time  as  another  similar 
election  again  changes  the  authorized  rate. 

This  may  give  the  taxpayer  the  impression 
that  while  the  first  year's  tax  rate  under  the  new 
law  is  to  be  4  per  cent,  the  rate  for  all  succeed- 
ing years  may  be  considerably  less. 

The  tax  paying  public  should  not  be  deluded 
with  this  idea  in  anticipating  any  material  de- 
crease in  the  4  per  cent  rate,  so  long  as  the 
present  authorized  rate  remains  unchanged  by 
a  regular  election. 

We  have  clearly  shown  elsewhere  that  the 
universal  experience  is  that  all  taxing  bodies 
tend  to  use  all  the  money  they  can  raise,  and 
it  would  be  a  short  time  until  each  tax  authority 
was  again  levying  the  limit,  even  though  at  first 
the  assessments  were  so  large  that  a  lower  rate 
would  produce  more  revenue  than  it  now  used. 

This  issue  is  not  raised  here  for  the  purpose 
of  questioning  in  any  way  the  necessity  of  a  4 
per  cent  rate  assessment  in  any  school  district 


182      The  Destiny  of  the  American  City 

in  the  state  of  Illinois  for  the  first  year,  or  for 
that  matter,  all  the  years  to  follow,  but  to  point 
out  more  particularly  the  universal  rule,  to 
which  this  tax  law  would  be  the  exception  if  it 
were  any  different  from  those  that  have  come 
and  gone  before. 

While  in  some  school  districts  throughout  the 
state  the  maximum  school  tax  rate  will  be  nec- 
essary, at  the  same  time,  no  doubt,  an  effort  will 
be  made  to  advance  the  rate  under  the  law  to 
the  4%  maximum,  which  in  many  instances  with 
proper  economy,  good  sense  and  business  judg- 
ment would  not  be  necessary. 

The  general  rule  is,  so  long  as  there  is  a  law, 
making  an  increase  in  taxation  possible,  it  will 
find  advocates,  ever  diligent  and  ever  ready, 
with  ample  argument  why  the  increase  should 
be  made,  and  plenty  reasons  why  any  rate  less 
than  the  maximum  is  insufficient. 

In  public  affairs,  what  is  everybody's  business 
is  usually  nobody's  business.  The  result  is  with- 
out sufficient  data  at  hand  to  combat  the  argu- 
ment and  no  local  organ  or  advocate  to  defend, 
the  increase  is  made. 

When  it  comes  to  pay  the  cost,  the  tax  payer 
then  and  not  until  then,  is  aroused  from  his 
lethargy,  when  it  is  too  late  to  do  himself  or 
any  one  else  any  good,  and  his  denunciations 
become  strong  and  vehement  and  his  fiery  pro- 
tests most  forcible  and  prolonged. 


The  City  and  the  Tax  Problem         183 

The  great  difference  between  an  industrial 
financial  arrangement  on  the  part  of  the  indi- 
vidual or  corporation  and  a  financial  arrange- 
ment on  the  part  of  the  government  is  quite 
noticeable. 

When  a  certain  industry  makes  a  financial 
arrangement  for  reserve  capital  or  credit  to  be 
used  for  certain  specific  purposes  or  contin- 
gencies, it  very  seldom  draws  up  to  the  limit  and 
a  larger  liability  created  if  it  is  found  by  proper 
economy,  business  judgment  and  good  planning 
to  be  unnecessary. 

While  on  the  other  hand,  in  government 
financing  raised  by  taxation,  the  limit  is  usually 
taken  and  the  full  amount  of  the  fund  con- 
sumed and  used  in  the  various  channels  of  ex- 
penditure. 

It  is  obvious,  in  the  light  of  the  many  stories 
of  municipal  waste  that  reaches  us  from  all 
quarters,  that  one  of  the  very  important  things 
for  the  American  city  to  accomplish  is  to  estab- 
lish a  system  of  checking,  located  somewhere 
between  the  source  of  supply  and  the  final  dis- 
bursements of  a  fund,  so  that  the  one  who  must 
pay  the  cost  of  government  may  know  that  the 
best  business  judgment  is  employed  in  seeing 
that  for  every  dollar  expended  a  dollar's  worth 
of  actual  value  is  received. 

A  loss  by  laxity,  mismanagement  and  poor 
business  judgment  so  far  as  taxation  is  con- 


184      The  Destiny  of  the  American  City 

cerned  is  just  as  much  of  a  loss  as  one  involv- 
ing moral  turpitude  and  should  have  its  proper 
checks  and  balances. 

A  bureau  of  municipal  research,  as  outlined 
in  another  chapter,  making  surveys  of  city 
schools,  reports  and  recommendations,  would 
go  a  long  ways  in  this  direction. 

Not  that  the  honesty  and  integrity  of  those 
delegated  to  care  and  distribute  the  fund  is 
questioned,  but  that  the  tax  paying  public  may 
have  the  proper  assurance  that  the  best  busi- 
ness judgment  and  care  is  used  in  all  disburse- 
ments. 

Cities  must  progress,  and  in  order  to  do  so 
taxes  must  be  assessed. 

Satisfy  them  who  must  pay  the  cost  of  gov- 
ernment, that  proper  consideration  is  given  to 
the  economical  and  business-like  use  of  the 
money  so  that  the  maximum  benefits  will  accrue 
at  minimum  cost,  and  very  little  will  be  heard 
in  the  way  of  protests  against  the  promotion  of 
anything  like  a  reasonable  and  necessary  public 
improvement. 

The  Sales  Tax 

The  subject  of  taxation  should  not  be  closed 
and  dismissed  without  saying  something  about 
the  sales  tax.  In  future  discussions  of  the  prob- 
lems of  taxation,  the  proponents  of  this  plan  are 


The  City  and  the  Tax  Problem         185 

determined  that  the  sales  tax  shall  not  be  over- 
looked and  that  it  shall  occupy  its  proper  place 
in  the  general  discussion  of  the  subject  matter. 

It  becomes,  therefore,  quite  important  that  the 
virtues  and  faults  of  this  form  of  taxation  be 
given  some  consideration  and  careful  study.  In 
searching  for  the  invisible  tax,  the  kind  for 
which  one  pays  and  is  unaware  of  the  fact  that 
it  has  been  paid,  the  sales  tax  comes  the  nearest 
of  any  so  far  suggested. 

The  proponents  of  a  general  sales  tax  have 
Canada  to  draw  upon  for  inspiration.  They 
quote  Stephen  Leacock,  professor  of  economics 
at  McGill  University,  Montreal,  whose  testimony 
echoes,  they  claim,  hundreds  of  all  classes  in- 
terviewed by  congressmen  of  the  United  States 
on  a  tour  of  investigation  through  Canada  re- 
cently, as  follows:  "The  most  wonderful  thing 
about  the  Canadian  sales  tax  is  that  the  con- 
sumer is  practically  unaware  that  there  is  any 
such  tax.  Ask  any  Canadian  about  the  income 
tax  or  the  luxury  tax  and  he  will  swear.  But 
question  him  about  the  sales  tax  and  he  will 
look  puzzled  and  say  that  he  thinks  there  is  one, 
but  can't  remember  exactly  what  it  is  or  who 
pays  it." 

The  various  points  covered  by  the  proponents 
of  the  plan  are  that  a  low  rate  will  be  applied 
to  a  limited  number  of  commodities;  that  the 
rate  is  levied  only  on  one  turnover  and  only  on 


186      The  Destiny  of  the  American  City 

certain  commodities;  that  it  is  collected  from 
the  manufacturers  and  not  from  successive 
middlemen,  so  that  it  means  exactly  the  one  per 
cent,  or  whatever  rate  is  fixed  in  the  first  in- 
stance, and  no  more;  that  paid  at  its  source,  this 
tax  would  be  diffused  in  part  through  the  nation 
as  a  whole;  that  the  tax  is  so  small  that  in  some 
cases  the  manufacturer  will  absorb  it,  in  other 
cases  he  will  pass  it  on  to  the  consumer;  that 
many  articles  will  be  exempt  from  taxation, 
including  farm  products  and  most  foodstuff. 

We  find  advocates  of  a  general  sales  tax  are 
not  confined  to  any  one  political  belief.  Presi- 
dent Harding  makes  this  statement  in  its  behalf : 
"Any  compensation  legislation  ought  to  carry 
with  it  the  provisions  for  raising  the  needed 
revenues,  and  I  find  myself  unable  to  suggest 
any  commendable  plan  other  than  that  of  a  gen- 
eral sales  tax." 

Ex-Senator  Beveridge,  the  progressive,  asserts 
unequivocally  that  the  present  tax  will  ruin  the 
country  and  holds  that  the  sales  tax  must  be 
used  to  replace  some  of  them  or  there  will  be 
no  permanent  prosperity,  no  general  and  con- 
tinuous employment  of  labor,  no  high  standard 
of  living  and  no  increasing  enterprises.  Ex- 
Senator  Beveridge  has  gone  so  far  in  his  advo- 
cacy of  the  sales  tax  as  to  make  it  his  main  issue 
in  his  campaign  for  the  senate. 

In  his  address  to  business  men  and  working- 


The  City  and  the  Tax  Problem  187 

men  throughout  the  state  of  Indiana,  it  is  said 
that  he  put  the  issue  so  plainly  and  simply  that 
none  could  misunderstand  him.  Upon  this  issue 
he  has  been  so  far  extremely  successful  in  the 
primaries  and  will  continue  to  make  it  his  main 
issue  up  to  the  time  of  the  coming  election. 

In  showing  the  relation  existing  between  one 
of  wealth  and  one  of  limited  means  under  the 
practical  working  of  the  sales  tax,  the  propor- 
tion of  taxation  each  would  pay  thereunder,  he 
uses  the  following  illustration:  A  woman  of 
wealth  buys  a  $2,000  fur  coat,  at  1  per  cent  tax 
she  pays  the  government  $20.00.  A  woman  of 
small  means  buys  a  cloth  coat  at  a  cost  of  $25.00, 
at  1  per  cent  tax  she  pays  the  government  25c. 
The  rich  woman  pays  80  times  as  much  as  the 
woman  of  small  means.  Each  pays  according 
to  her  means  and  her  expenditure,  which,  he 
contends,  is  the  first  principle  of  just  taxation. 

In  other  words,  he  who  consumes  much  would 
pay  much,  and  he  who  consumes  little  would 
pay  little.  In  the  consideration  of  a  sales  tax, 
the  question  arises  whether  it  is  to  be  collected 
at  only  one  point  in  the  journey  of  the  goods 
from  the  producer  to  the  consumer  or  at  every 
turnover. 

The  principal  objection  to  the  sales  tax  is, 
that  it  theoretically  places  the  burden  direct 
upon  the  ultimate  consumer  and  does  not 
exempt  the  masses  of  the  people  with  small 


188      The  Destiny  of  the  American  City 

means.  For  that  matter,  in  the  final  analysis, 
no  form  of  taxation,  except  possibly  inheritance 
taxes,  fails  to  reach  the  ultimate  consumer. 

In  this  regard,  there  is  no  difference  between 
the  sales  tax  and  any  other  form  of  taxation. 
There  is  one  thing,  however,  a  sales  tax  cannot 
be  multiplied  as  in  case  of  excess  profits  tax,  and 
the  amount  paid  is  the  amount  collected  by  the 
government. 

In  our  exposition  of  the  subject  of  taxation, 
our  purpose  has  been  to  analyze  as  best  we 
could  the  secondary  effects  of  the  various  forms 
of  taxation  now  in  use,  and  the  possibilities  of 
those  contemplated. 

In  doing  this,  it  is  with  the  hope  that  some 
of  the  waste  and  extravagances  of  the  past  may 
be  abated,  and  in  the  end  overcome;  and  that 
whatever  may  be  done  in  the  way  of  revenue 
legislation  shall  be  in  the  best  interests  of  the 
nation  as  a  whole.  Also  that  a  more  profound 
knowledge  of  the  subject  of  taxation  will  be 
acquired  by  the  average  citizen,  who  seems  to 
be  on  this  question  more  or  less  inclined  to 
follow  than  to  lead. 

The  individual  as  a  business  and  financial 
guide,  teaches  retrenchment  and  reform  in  order 
to  tide  through  into  a  better  and  more  pros- 
perous period.  This  is  done  by  conforming  the 
budget  to  prevailing  conditions. 

An    attempt   to    force   upon   him    additional 


The  City  and  the  Tax  Problem  189 

obligations,  however  strong  it  may  be  his  duty 
to  assume,  cannot  be  taken  on  without  provid- 
ing outside  ways  and  means  of  financing  so  as 
not  to  disturb  or  interrupt  the  liquidation  of 
the  old,  already  taxed  and  overburdened  to  the 
limit.  Otherwise  continuous  additions  will 
make  the  tangled  snarl  still  more  difficult  to 
unravel  and  the  days  of  liquidation  still  further 
delayed.  The  same  principle  also  applies  to 
government  business. 

When  history  is  finally  written,  the  statesman- 
ship of  no  administration  during  this  trying 
period  will  ever  be  questioned  if  sincere  and 
courageous  efforts  are  made  to  bring  about  a 
better  economic  condition  in  the  curtailment  of 
waste  and  expenditure,  surrounded  as  it  is  with 
abnormal  conditions,  which  naturally  encourage 
impossible  demands  and  cries  for  relief.  These 
demands,  coming  from  every  group  and  quarter, 
must  oftentimes  be  denied,  the  good  with  the 
bad,  until  brought  out  of  chaos,  in  an  orderly 
and  business-like  manner. 

Later,  by  so  doing,  a  blessing  in  disguise  may 
be  found  in  the  speedy  advancement  of  merito- 
rious demands,  first  in  eliminating  the  unessen- 
tial which  are  always  found  upon  sober  second 
thought  and  brought  to  the  surface.  Then  the 
sacred  obligation  of  the  American  government 
may  thereby  be  discharged,  which  in  the  full- 
ness of  time  it  has  always  done,  and  will  ever 


190      The  Destiny  of  the  American  City 

continue  to  do,  to  the  full  and  entire  satisfaction 
of  the  American  people. 

Taxation  and  the  Profiteer 

New  tax  laws  with  further  penalties  on  suc- 
cess and  thrift  to  pay  for  governmental  waste 
and  extravagances  must  come  to  an  end,  sooner 
or  later. 

To  enact  tax  laws  for  penalizing  the  profiteer 
is  good  legislation,  provided  the  law  accom- 
plishes the  purpose  for  which  it  is  intended,  by 
capturing  the  real  culprit. 

There  are  several  reasons  why  this  is  not 
always  done  and  a  difficult  thing  to  do;  for  it 
is  found  not  only  impossible  to  make  the  larger 
incomes  pay  the  major  cost  of  government,  but 
even  a  just  share  or  proportion  of  the  cost. 

The  reason  why  they  cannot  be  made  to  pay 
the  major  portion  of  the  cost  of  government  is 
because  there  are  not  enough  of  them  only  to 
pay  a  fraction  of  the  great  amount  of  the  annual 
government  expenditure  now  assessed  even  at 
the  old  rate. 

The  reason  why  those  with  larger  incomes  are 
not  compelled  to  pay  their  just  share  of  the  cost 
is  on  account  of  the  refuge  found  in  tax-exempt 
securities. 

It  is  said  that  the  president  of  one  of  the  big- 
gest banks  in  New  York  has  written  that  boot- 
leggers whose  profits  run  into  the  hundreds  of 


The  City  and  the  Tax  Problem  191 

millions  invest  these  profits  in  securities  that 
pay  no  tax  to  the  government. 

Surely  a  most  excellent  zone  of  safety  for 
the  bootlegger  who  not  only  protects  his  income 
from  tax  assessments,  but  the  knowledge  of  its 
source  as  well.  A  good  thing  for  the  bootleggers, 
but  rather  a  hard  one  on  the  other  taxpayers 
who  are  forced  to  make  up  the  deficits. 

It  is  easily  seen  that  those  of  moderate  in- 
comes, which  in  the  aggregate  amount  to  a  great 
deal  more  than  the  large  ones,  must  necessarily 
pay  the  greater  portion  and  therefore  are  the 
ones  upon  which  the  greater  penalties  for  gov- 
ernmental waste  and  extravagance  must  neces- 
sarily rest. 

Overtaxing  wealth  gathers  up  very  little  in  the 
way  of  paying  the  cost  of  government  with  a 
loophole  left  open  for  transplanting  it  into  a 
zone  of  safety,  free  and  exempt  from  all  taxa- 
tion. 

A  much  better  way  to  do  would  be  to  first 
plug  up  the  hole  and  place  on  wealth  a  just  and 
reasonable  taxation  and  push  it  boldly  out  into 
industrial  channels,  thereby  permitting  it  to 
gather  up  more  wealth,  so  that  these  additions 
may  in  turn  be  also  justly  and  reasonably  taxed, 
and  in  the  end  and  aggregate  gather  up  more 
revenue  than  it  is  possible  to  do  under  the 
present  plan  of  operation. 

The  delusion  on  the  part  of  a  great  many  is 


192      The  Destiny  of  the  American  City 

the  idea  that  the  very  rich  can  pay  most  of  the 
cost  of  government,  which  is  between  four  and 
five  billion  a  year.  This  idea  would  be  ex- 
tremely agreeable  to  many  of  us  if  it  were  only 
true,  but  it  is  not  anyways  near  the  truth.  The 
magnitude  of  the  amount  to  pay  and  the  scarcity 
of  the  very  rich  from  whom  to  collect  makes 
this  impossible. 

It  is  estimated  that  if  all  the  incomes  of  the 
very  rich  in  this  country  were  seized  by  the 
government,  not  taxed,  but  simply  taken,  they 
would  pay  barely  one-tenth  of  the  cost.  The 
other  nine-tenths  would  have  to  be  paid  by  the 
moderately  rich  and  well-to-do. 

In  commenting  on  this  phase  of  the  subject, 
Robert  Montgomery,  an  authority  on  tax  mat- 
ters, takes  the  position  that  contribution  by  the 
business  men  of  both  parties  should  not  be 
made  for  political  purposes  until  legislation  has 
been  enacted — not  promised — which  means 
lower  expenditures  so  that  success  and  thrift  in 
business  will  not  be  further  penalized  to  pay  for 
improvident  and  inexcusable  waste  and  extrava- 
gance. 

After  charging  Congress  with  being  incom- 
petent and  wasteful  and  composed  of  men  dom- 
inated entirely  by  quest  for  vote,  he  says: 
"Commencing  with  the  federal  revenue  act  of 
1913,  all  of  our  income  tax  laws  have  been  de- 
liberately aimed  at  successful  industry.     Con- 


The  City  and  the  Tax  Problem         193 

gress  has  proceeded  on  the  theory  that  all  large 
profits  are  illegitimate.  The  most  popular  vote 
seeking  word  on  the  floor  of  Congress  is  'profi- 
teer.' A  "profiteer"  is  a  man  who  makes  a  profit, 
therefore  he  is  a  crook  and  a  profit  must  be 
extracted  from  him  by  a  new  tax  levy.' " 

From  authentic  sources  we  now  learn  while 
the  profiteer  is  still  quite  active  along  certain 
lines,  and  adding  to  his  horde,  the  main  bulk 
of  business  is  not  quite  so  profitable,  as  many 
have  imagined  and  in  many  instances  show  very 
small  profit  and  frequent  losses  and  business 
generally  unable  to  withstand  increased  over- 
head and  in  no  condition  to  take  on  new  tax 
burdens. 

While  many  are  prone  to  give  but  little  con- 
sideration to  the  report  and  appeal  that  the 
treasury  department  is  sending  out,  calling 
attention,  from  time  to  time,  to  the  deplorable 
condition  of  the  government  finance,  the  people 
will  sooner  or  later  be  compelled  to  realize  the 
fact,  as  a  barometer,  indicating  financial  squalls 
that  there  is  no  better  one  to  be  found  and  one 
which  must  eventually  be  recognized  and  ac- 
cepted as  such. 

When  it  is  found  that  the  deficit  this  year  is 
fast  approaching  the  billion  dollar  mark  and 
that  the  government  will  be  compelled  to  save 
nearly  this  amount  on  expenditures  instead  of 
spending  it,  it  surely  becomes  food  for  some 


194      The  Destiny  of  the  American  City 

reflection  on  the  part  of  the  business  man 
already  tax-ridden  and  crying  for  relief,  as  well 
as  others  who  are  still  demanding  more  com- 
pensation legislation,  for  this  thing,  that  and 
the  other. 

The  government  banker  surely  has  his  hands 
full  in  the  endeavor  to  satisfy  the  demands  of 
both  and  at  the  same  time  wondering  what  he 
can  do  or  what  provisions  he  will  be  able  to 
make  to  take  care  of  the  inevitable  shortage. 

Invisible  Taxation 

What  about  the  invisible  tax?  The  tax  you 
do  not  see?  The  tax  that  is  so  far  away  it  never 
gets  to  you?  That  is,  you  think  it  does  not, 
but  which  is  nevertheless  always  found  to  be 
nearby,  ever  present  in  every  outlay,  in  every 
venture  and  at  every  outpost,  as  strong  and  im- 
penetrable around  every  taxpayer  as  any  cor- 
don that  ever  encircled  a  captured  army. 

Invisible  taxation  is  very  easily  traced  if  one 
did  not  really  care  to  delude  himself  about  its 
mysteries,  or  be  bothered  or  mentally  disturbed 
with  unpleasant  thoughts  and  with  only  a  few 
facts  and  figures. 

There  are  a  great  many  features  about  taxa- 
tion that  the  average  citizen  has  been  in  the 
past  more  or  less  inclined  to  overlook  or  side- 
step, leaving  it  to  the  other  fellow  to  look  after, 
preferring  to  follow  rather  than  to  lead,  that 


The  City  and  the  Tax  Problem  195 

under  present  abnormal  conditions  is  now  at- 
tracting his  attention,  and  which  he  feels  is 
worthy  of  more  personal  consideration. 

These  things  are  compelling  him  to  ask  many 
questions  that  have  never  been  asked,  realizing 
as  he  does  now  how  much  more  direct  the  cost 
of  government  falls  on  him  as  an  individual 
taxpayer  than  he  ever  thought  it  did  before. 

He  is  now  wondering  how  much  money  it 
would  be  possible  for  him  to  save  out  of  his 
earnings  for  himself  and  family,  that  might  be 
added  to  his  surplus  savings  if  things  were  only 
different. 

The  present  condition  of  government  finance 
and  increased  demands  from  various  groups 
for  further  inroads  upon  the  treasury  which 
must  be  raised  by  additional  taxation  together 
with  stories  of  governmental  waste  and  extrav- 
agances have  aroused  him  from  his  lethargy, 
forcing  him  to  properly  sense  the  deplorable 
condition  we  are  now  in  or  we  might  better  say 
just  entering. 

For  there  is  no  telling  where  the  exit  may 
be,  or  whether  more  costly  lessons  are  necessary 
to  be  learned  before  business  men  who  should 
really  know  better,  will  act  and  act  in  a  way 
that  will  have  a  telling  effect  upon  legislation. 

Legislation  which  seems  to  be  drifting,  so  far 
as  practical  results  are  concerned,  farther  and 
farther  away  from  the  real  issue  needs  only 


196      The  Destiny  of  the  American  City 

the  organized  efforts  of  the  folks  back  home 
to  see  that  the  great  unrepresented  class,  the 
American  taxpayer,  shall  have  proper  consid- 
eration from  those  who  control  and  dominate 
national,  state,  and  municipal  taxation. 

One  single  item  surrounding  the  taxation 
problem  in  its  relation  with  the  trinity — the 
government,  the  railroad  and  the  ultimate  con- 
sumer— will  suffice  to  show  the  most  casual  ob- 
server how  a  dollar  wasted  by  the  government 
in  extravagances  and  reckless  spending  must 
eventually  be  paid  by  the  ultimate  consumer, 
demonstrating  conclusively  that  the  assessment 
is  not  a  remote  contingency,  but  on  the  contrary, 
an  immediate  charge. 

Upon  good  authority,  it  is  learned  that  at  least 
one-half  the  earnings  of  the  railroads  of  the 
country  are  annually  absorbed  by  the  govern- 
ment in  the  way  of  taxation,  and  necessarily 
charged  up  to  traffic,  which  economists  contend 
is  one  of  the  principal  reasons  for  the  high  cost 
of  distribution. 

The  merchant,  in  this  manner,  pays  his  in- 
visible tax  to  the  government  through  the  rail- 
road who  in  turn  charges  it  up  to  the  purchaser 
and  who  in  the  end  makes  good  to  the  merchant 
the  overhead,  thus  entailed. 

The  farmer  pays  his  invisible  tax  to  the  gov- 
ernment when  he  ships  two  or  three  cars  of 
grain  to  market  and  the  railroad  takes  one  of 


The  City  and  the  Tax  Problem         197 

the  car  loads  for  transportation  and  divides 
fifty-fifty  with  the  government  for  its  share. 

The  farmer  again  in  his  turn  takes  the 
money  received  out  of  the  proceeds  of  the  grain, 
upon  which  he  has  already  paid  one  invisi- 
ble tax  assessment  and  contributes  another  as- 
sessment for  everything  he  purchases  to  the 
government  through  its  intermediaries,  the 
merchant  and  the  railroad. 

This,  after  all,  does  not  prove  to  be  a  very 
complicated  problem  in  mathematics.  Most  any 
school-boy  can  easily  figure  out  if  the  govern- 
ment is  able  to  reduce  its  extravagances,  waste 
and  improvident  spending  account  to  such  an 
extent  as  to  enable  it  to  take  only  one-fourth 
of  the  annual  earnings  of  the  railroads  of  the 
country  instead  of  one-half,  that  the  railroads 
then  in  turn  would  be  in  position  to  take  only 
one-half  a  car  of  grain  from  the  farmer  for 
transportation  charges,  instead  of  a  whole  car, 
and  the  merchant  in  like  manner  adding  to  the 
price  of  goods  sold  the  farmer  only  one-half  the 
amount  formerly  charged  for  transportation. 

There  is  no  use  charging  up  existing  govern- 
mental extravagances  and  waste  together  with 
all  the  over-taxation,  confiscation  of  incomes 
and  industrial  earnings  that  go  with  it  to  any 
one  political  party  in  this  regard  and  dismissing 
the  responsibility  by  merely  demanding  a 
change  of  administration  and  letting  it  all  go  at 
that. 


198      The  Destiny  of  the  American  City 

Broad-minded  statesmen  throughout  the  land, 
everywhere,  concede  that  this  is  not  a  party 
question  and  that  one  political  party  is  just  as 
guilty  as  the  other. 

It  is  safe  to  say,  however,  that  a  conscientious 
endeavor  on  the  part  of  any  one  political  party 
with  proper  force  and  courage  to  cut  the  Gor- 
dian  knot  would  now  be  an  extremely  popular 
one  with, the  great  masses  of  people. 


XV 

STANDARDIZATION  OF 
MATERIALS 


There  is  such  a  power,  a  mighty  power  based 
on  the  invincible  unwillingness  of  the  whole  people 
to  endure  hardships  and  suffering  because  of  the 
stubbornness  or  selfishness  or  greed  of  a  part  of 
the  people.  This  power — public  opinion — is  apt  to 
be  slow  in  making  itself  really  felt,  and  of  these 
times  of  a  near  hopeless,  'what's-the-use'  attitude 
among  so  many  it  seems  to  be  slower  in  becoming 
effective  than  formerly. 

At  the  same  time  there  appears  to  be  more  of 
"the  public-be-damned"  attitude  than  there  once 
was.  But  this  latter  attitude  is  still  wisely  cau- 
tious and  inclined  to  feel  the  public  pulse  with 
watchful  care  before  it  lets  itself  go  too  far.  For 
it  is  intelligent  enough  to  know  that  the  public 
opinion  of  a  nation  once  aroused  and  determined 
is  a  force  too  mighty  to  be  lightly  trifled  with  by 
a  mere  group  or  even  several  groups  of  the 
people. 

— Selected, 


STANDARDIZATION  OF 
MATERIALS 

Through  the  standardization  of  materials  and 
processes  and  the  collection  and  dissemination 
of  information  by  the  Bureau  of  Standardiza- 
tion, the  federal  government  has  been  en- 
deavoring to  do  something  toward  reviving 
building  and  cheapening  housing. 

While  this  movement  is  one  in  the  right 
direction,  it  will  take  time  to  show  results  and 
offers  no  immediate  relief,  surrounded  as  the 
building  industry  is,  with  so  many  more  serious 
handicaps,  such  as  transportation,  taxation  and 
labor  problems,  which  are  at  the  present  time 
far  from  being  solved. 

A  permanent  division  of  construction  and 
housing  was  created  under  the  Galder  bill  about 
a  year  ago.  The  bill  had  the  support  of  Com- 
missioner Hoover,  the  Bureau  of  Standardiza- 
tion being  located  in  the  Department  of  Com- 
merce; but  so  far  nothing  seems  to  be  available 
for  publication  at  the  present  time*,  in  the  way 
of  any  report  that  enumerates  any  practical 
accomplishments  along  this  line. 

The  purpose  of  the  new  division  is  to  gather 
practical,  scientific,  and  statistical  information 

201 


202      The  Destiny  of  the  American  City 

operate  with  manufacturers,  architects,  engi- 
neers, public  officials,  commercial,  trade,  and 
civic  associations,  in  regard  to  construction 
problems,  both  scientific  and  commercial,  so  that 
building  work  may  be  economically  conducted. 

The  scope  of  the  data  to  be  gathered  may 
cover  improved  practices  in  construction  work 
in  both  the  United  States  and  foreign  countries; 
standardization  of  structural  units,  materials, 
and  building  code  requirements;  economy  in 
the  use  of  building  materials;  economy  in 
manufacture  and  distribution,  plant  capacity, 
production,  and  stock  on  hand,  imports  and  ex- 
ports of  building  materials  from  month  to 
month;  the  financial,  transportation,  power, 
and  labor  requirements  of  the  building  in- 
dustry; losses  through  irregularity  of  operation; 
fluctuations  in  prices;  fluctuations  in  volume  of 
construction;  city  planning,  zoning,  housing 
standards,  rental  conditions,  and  so  on. 

Possibilities  of  the  proposed  work  are  des- 
cribed in  a  statement  prepared  in  the  depart- 
ment of  commerce  as  follows: 

"Standardization  of  structural  units  and 
material  has  already  been  undertaken  in  Eng- 
land, but  is  in  its  infancy  in  this  country. 
Standardization  does  not  contemplate  the  great- 
er uniformity  in  the  exterior  or  in  the  in- 
terior arrangement  of  buildings,  but  rather  the 
adoption  of  uniform  methods  and  the  elimina- 


Standardization  of  Materials  203 

tion  of  useless  types  and  sizes  of  parts,  the 
adoption  of  interchangeability  of  parts,  as  well 
as  the  adoption  of  clear  and  uniform  defini- 
tions of  terminology.  Standardization  should 
be  considered  as  an  aim  or  disposition  of  the 
industries  to  co-ordinate  their  work  rather 
than  as  a  definition  of  perfection. 

"It  is  urged  that  economy  in  material  may  be 
effected  at  an  early  date  through  the  revision  of 
building  codes  of  many  municipalities,  and 
that  such  a  revision  toward  uniformity  may  be 
brought  about  without  impairing  the  usefulness, 
safety,  or  durability  of  the  structures.  Flagrant 
variations  now  existing  as  to  thicknesses  of 
walls,  floor  loads,  allowable  stresses  on  tim- 
ber, concrete,  and  steel,  if  eliminated,  might 
save,  according  to  some  authorities,  from  5  to 
20  per  cent  in  the  use  of  some  of  the  materials, 
and  might  save,  according  to  other  authorities, 
from  5  to  20  per  cent  in  the  total  cost  of  certain 
types  of  construction. 

"The  subject  of  economy  in  methods  of 
manufacturing  and  distribution  involves  not 
only  more  scientific  plan  operation  but  also 
more  continuous  operation.  Identification  of 
the  causes  of  the  irregularity  and  intermittency 
of  operation  particularly  inherent  in  the  con- 
struction industry  may  bring  about,  it  is  hoped, 
elimination  of  some  of  these  causes  and  the 
elimination  of  loss  through  the  frequent  plant 
idleness  and  unemployment." 


XVI 
CONSTRUCTION  ETHICS 


When  food  was  short  and  the  allies  had  to  be 
fed,  the  government  called  upon  the  farmers  for 
help,  and  with  government  aid,  food  was  fur- 
nished, and  the  war  eventually  won.  A  heroic  act 
upon  the  part  of  the  government,  for  which  it  re- 
ceives full  credit.  The  call  of  the  government 
now,  is  to  the  builder,  who  holds  the  magic  wand 
that  will  throw  into  seething  activity  the  indus- 
trial machinery  of  the  country  and  whose  plea  is 
for  first  aid  from  the  government;  not  in  a  pater- 
nalistic sense,  but  for  a  fair  and  even  chance  to 
respond  to  the  call,  without  assuming  extreme 
hazards,  by  correcting  the  abuses  and  eliminat- 
ing the  evils  that  have  crept  into  the  building  in- 
dustry during  a  period  of  national  helplessness. 
— Municipal  Problems,  1918. 


CONSTRUCTION  ETHICS 

As  we  go  to  press,  it  has  just  been  announced 
that  Secretary  Hoover  will  launch  a  national 
movement  June  19th  for  a  lower  building  cost 
and  to  help  the  construction  industry  square 
itself  with  the  public  by  eliminating  the  minor- 
ity that  has  brought  it  to  ill  repute. 

Franklin  D.  Roosevelt,  former  Assistant 
Secretary  of  the  Navy,  is  to  be  made  President 
when  the  movement  is  organized  in  Washing- 
ton in  June.  It  is  said  that  Secretary  Hoover 
and  Mr.  Roosevelt  will  attempt  to  eliminate 
graft  from  the  building  industry. 

These  gentlemen  will  surely  have,  at  their 
command,  a  fund  of  information  gathered  up 
by  the  Daily  Legislative  Commission  of  Illinois 
and  the  Lockwood  Legislative  Commission  of 
New  York,  to  say  nothing  about  material  fur- 
nished in  building  operations  under  the  Landis 
award  and  many  other  valuable  leads  found  in 
all  parts  of  the  country. 

Reconstruction  in  construction  ethics,  will  be 
the  slogan. 

A  trustee  appointed,  as  proposed,  to  formu- 
late a  code  of  ethics,  through  the  federal  govern- 
ment, for  the  moral  regeneration  of  the  build- 

207 


208      The  Destiny  of  the  American  City 

ing  industry,  means  nothing  more  than  carry- 
ing out  the  principle,  enunciated  in  Municipal 
Problems,  several  years  ago  in  taking  the 
advanced  position  at  that  time,  that  "the  period 
is  one  for  corrective  measures,  to  correct  abuses 
that  surround  the  building  industry,  rather 
than  one  for  artificial  stimulation,  that  not  only 
stimulates  building,  temporarily,  but  the  abuses 
that  go  with  it,  entailing,  sooner  or  later,  an- 
other period  of  stagnation  to  correct  these 
abuses." 

The  trustee  appointed  for  this  job  has  no 
easy  task,  for  the  reason  that  many  of  the 
abuses  are  so  deep  and  long  seated  as  to  become 
part  and  parcel  of  a  very  bad  system,  tolerated 
by  some,  detested  by  others,  politically  bound 
and  protected  in  many  instances,  making  in- 
dividual efforts  fruitless,  in  any  attempt  to  un- 
shackle its  relentless  strangle-hold  on  the 
building  industry. 

All  of  these  things  the  trustee  must  unravel, 
disconnect,  inoculate  and  transplant  into  the 
purer  atmosphere  of  publicity  and  impartial 
analysis. 

It  is  hoped  that  this  can  be  done  to  such  an 
extent  as  to  crystalize  public  sentiment  into  a 
unit  of  action  that  will  give  speedy  results  to  a 
most  trying,  disastrous  and  demoralizing  in- 
dustrial situation. 

We  give  below  a  joint  statement  issued  by  the 


Construction  Ethics  209 

executive  committee  of  the  American  Institute 
of  Architects,  and  the  executive  board  of  the 
association  of  general  contractors  of  America, 
elaborating  on  the  possibilities  of  this  move- 
ment by  the  federal  government. 

"For  the  first  time  in  the  history  of  American 
industrial  development  a  great  industry  has 
united  all  its  elements — manufacturers,  labor 
and  the  professional  branches — in  a  great  effort 
to  raise  the  standards  and  efficiency  of  the  in- 
dustry and  improve  the  service  which  it  renders 
to  the  public. 

"The  nearest  precedent  is  that  furnished  by 
the  election  of  Will  H.  Hays  as  arbiter  of  the 
motion  picture  industry,  but  the  American  Con- 
struction Council,  on  which  the  organization 
details  are  now  being  completed,  goes  much 
farther. 

"It  dips  down  into  the  industry  and  brings 
together  for  conference,  for  betterment  of  un- 
derstanding and  for  common  action  the  archi- 
tects, the  engineers,  labor  contractors,  material 
manufacturers  and  dealers,  bankers  and  insur- 
ance men — all  elements  concerned  with  build- 
ing work  of  any  description  and  with  the  con- 
struction of  public  works,  railroads,  bridges, 
irrigation  works,  and  so  on. 

"It  is  stipulated  that  all  the  work  of  the 
council  must  square  with  the  public  welfare, 
and  so  dominant  has  this  idea  been  in  the  pre- 


210      The  Destiny  of  the  American  City 

liminary  conferences  that  Secretary  of  Com- 
merce Hoover,  seeing  the  benefits  that  will  re- 
sult, has  taken  the  responsibility  of  presiding  at 
the  formal  organizing  meeting  in  Washington, 
June  19  and  20,  and  Franklin  D.  Roosevelt  has 
agreed  to  accept  the  presidency  of  the  organiza- 
tion. 

"Instead  of  thinking  of  the  building  of  houses 
as  the  individual  expression  of  the  fancy  of  the 
individual  citizens  or  the  building  of  highways 
and  railroads  as  merely  the  means  of  an  in- 
dustry we  call  transportation,  or  factory  build- 
ing and  hydro-electric  construction  as  isolated 
groups  of  individuals  for  private  gain,  we  must 
think  of  construction,  as  we  do  of  agriculture,  of 
mining,  or  of  manufacturing,  as  one  of  the 
greatest  creators  of  permanent  wealth,  as  one 
of  the  foundation  stones  in  our  civilization  on 
which  our  progress  is  built. 

"Investigation  has  shown  that  the  number  of 
workers  who,  together  with  their  families,  de- 
pend upon  the  construction  industry  for  a  live- 
lihood, totals  approximately  11,000,000  persons. 
It  is  conservatively  estimated  that  24  per  cent  of 
our  annual  capital  accumulation  and  over  50 
per  cent  of  our  national  savings  are  absorbed 
by  this  great  industry  every  normal  year. 

"The  public  has  lacked  confidence  in  the 
fairness  of  building  costs,  and  this  has  added 
to   the  pressure  put  upon  the  industry.     Not 


Construction  Ethics  211 

only  has  each  of  the  elements  been  re-examin- 
ing its  position  and  responsibility,  but  efforts 
at  co-ordinated  work  have  been  made. 

"Mr.  Hoover's  department  is  making  a  study 
of  building  codes,  and  when  its  work  is  com- 
pleted there  must  be  a  nation-wide  activity  to 
carry  the  recommendations  into  effect — a  type 
of  activity  which  the  new  organization  is  de- 
signed to  promote. 

"The  public  demands  that  the  industry  square 
itself  with  the  public  interest  by  eliminating  the 
minority  that  has  brought  it  into  ill-repute. 

"The  individual  elements  of  the  industry  are 
aroused  by  the  responsibility  which  it  owes  the 
public  and  to  the  opportunities  for  elimination 
both  of  duplicate  association  efforts  and  of 
wastes  in  construction  operations." 

These  gentlemen  have  surely  laid  out  for 
themselves  a  herculean  task,  one  that  will  be 
closely  watched  for  results.  If  it  is  possible  for 
them  to  force  the  friction  out  of  the  building  in- 
dustry it  will  have  accomplished  one  of  the  big 
things  for  the  industrial  world. 

It  is  hoped  that  any  future  report  we  shall 
make  on  this  subject  will  be  replete  in  many 
accomplishments  from  this  source. 

Any  attempt,  on  the  part  of  the  federal  gov- 
ernment, along  practical  lines,  that  will  in  any 
way  tend  to  stabilize  the  cost  of  building- 
material  and  labor,  the  primary  cause  of  stag- 


212      The  Destiny  of  the  American  City 

nation  in  the  building  industry,  should  have 
every  possible  encouragement. 

The  trouble  has  been,  up  to  the  present  time, 
during  a  period  covered  by  the  last  three  or 
four  years,  theorists  and  economists  have  been 
offering  numerous  remedies,  each  one  a  specific 
for  every  economic  ill. 

At  one  time  the  banker  was  to  blame.  If  he 
would  only  do  what  a  great  many  thought  he 
should  do,  everybody  in  town  would  own  a 
home. 

The  burden  was  then  shifted  from  the  bank- 
er's shoulders  to  another  and  something  else 
was  then  found  to  be  the  primary  cause  of  all 
trouble. 

The  plan  outlined  for  the  banker  was  for 
every  banker,  in  every  hamlet,  village  and  city, 
to  turn  out  deposits  to  those  wanting  to  build, 
not  only  for  the  purpose  of  building  homes, 
reducing  rents  and  increasing  housing,  but  to 
furnish  continuous  and  uninterrupted  employ- 
ment. 

This  would  mean  that  the  banker  would  loan 
his  money  to  one  who  is  willing  to  borrow,  the 
owner  of  a  lot,  with  limited  means,  for  the 
reason  that  the  one  who  had  the  credit  and 
financial  responsibility  behind  him  to  make  his 
obligations  good,  regardless  of  any  deprecia- 
tions, would  not  build,  no  matter  how  many 
volunteered  to  loan  the  money. 


Construction  Ethics  213 

With  bank  deposits  invested  in  building 
securities,  forcing  bankers  into  real  estate  own- 
ership and  depositors,  in  many  cases  holding 
the  sack,  would  surely  have  been  a  very  sorry 
thing  to  even  contemplate. 

The  reason  for  the  refusal,  on  the  part  of  the 
financially  responsible  borrower,  to  use  money 
so  provided,  can  be  much  better  understood  by 
referring  to  a  well  known  incident  that  oc- 
curred during  this  period. 

A  builder,  anxious  to  build,  fully  aware  from 
a  business  viewpoint,  why  it  was  unwise  to  do 
so,  after  listening  repeatedly  to  the  many 
reasons  given  by  those  that  were  telling  him 
why  he  should  build,  although  offering  to  do 
nothing  themselves  in  the  way  of  building  con- 
struction, volunteered  the  proposition  to  build 
so  many  houses,  if  others  would  also  join  in 
building  a  certain  number. 

To  one  of  the  parties,  owning  a  desirable 
building  site,  with  money  out  at  interest,  this 
subject  was  broached  and  carefully  discussed 
and  the  suggestion  offered  that  his  investment 
be  withdrawn  or  his  securities  sold  and  the 
amount  invested  in  building  construction. 

After  carefully  considering  the  proposition, 
the  lot  owner  figured  out  that  he  had  a  build- 
ing site  worth  at  least  $2000,  and  to  withdraw 
his  loan  of  $8000  and  place  it  in  a  building, 
formerly  costing  $4000,  might  entail  a  loss,  not 


214      The  Destiny  of  the  American  City 

only  of  the  building  site,  but  also  impair  his 
reserve  capital.  Consequently,  he  concluded  to 
keep  his  lot,  retain  his  investment  and  let  the 
other  fellow  try  the  experiment. 

Thus,  we  see  capital  employed  elsewhere,  to 
its  extreme  earning  capacity,  perfectly  satisfied 
to  wait  indefinitely  for  cost  of  labor  and  mate- 
rial to  stabilize  before  entering  into  construc- 
tion work. 

The  great  trouble,  on  the  part  of  those  assum- 
ing leadership,  in  the  solution  of  the  building 
problem,  has  been  the  fact  that  they  have  had 
no  financial  interest  in  building  construction, 
under  prevailing  conditions,  and  have  been 
attempting  to  apply  the  same  economic  princi- 
ples that  are  applied  to  merchandizing  and 
manufactured  products  of  a  character  and  kind 
that  can  be  made,  sold  and  worn  out,  all  in  the 
same  market,  thereby  inflicting  no  special  hard- 
ship on  the  manufacturer,  the  seller  or  the  con- 
sumer, as  a  result  of  a  declining  market. 

A  building,  however,  as  we  have  already  said, 
is  a  thing  that  is  built  for  permanency  and  for 
the  ages  and  can  not  be  built,  sold  and  worn  out 
all  in  the  same  market  in  order  to  escape  future 
depreciation. 

If  the  ones  delegated  to  represent  the  city,  the 
state  and  the  government  in  the  solution  of 
these  problems,  could  have  been  induced  to 
finance  a  building  program,  under  prevailing 


Construction  Ethics  215 

conditions,  using  their  own  money  instead  of 
asking  the  other  fellow  to  use  his,  a  great  many 
impractical  things  asked  for  and  done,  would 
have  been  omitted,  and  in  their  place,  no  doubt, 
more  fundamental  business  principles  would 
have  been  adopted,  resulting  in  more  essential 
things  accomplished. 


XVII 
THE  CITY  AND  THE  OPEN  SHOP 


Social  reformers  say  the  profits  should  be  only 
6  or  7  per  cent.  Most  workers  agree,  though  the 
socialists  among  them  say  there  shall  be  no  profits 
at  all. 

The  capitalists  and  employers  reject  both  prop- 
ositions. Without  profits,  they  will  not  organize 
and  manage  industries.  Unless  they  may  get 
more  than  6  or  7  per  cent  profit,  they  will  not 
venture  on  new  enterprises.  Then  there  will  be 
either  no  employment  worth  mentioning — as  in 
Russia — or  half-time  employment  as  in  many 
other  countries  today. 

Between  these  two  extremes  the  struggle  for 
wages  and  profits  surges  back  and  forth.  And 
though  we  all  want  to  see  it  abated  and  its  cruelties 
moderated,  we  have  this  consolation:  If  either 
side  won  a  complete  victory,  that  victory  would  be 
far  worse  for  business  and  popular  welfare  than 
the  struggle  itself. 

A  complete  victory  of  the  greediest  profiteers 
would  bring  most  of  this  nation  into  virtual  servi- 
tude. A  complete  victory  for  the  greediest  work- 
ingmen  would  wipe  this  country's  business  as 
clean  as  Russia's. 

— Hinman. 


THE  CITY  AND  THE  OPEN  SHOP 

Some  of  the  important  problems  of  the  mu- 
nicipality, ever  present,  are  questions  arising 
out  of  labor  and  its  employment. 

At  the  present  time  the  controversy  between 
unionism  and  the  open  shop  is  one  that  is  as- 
suming some  proportion. 

The  question,  resolved  that  the  open  shop,  as 
applied  by  American  industry,  is  unsound,  un- 
economical and  un-American,  is  one  that  labor 
unions,  throughout  the  country,  are  debating 
with  any  one  who  may  wish  to  join  issue  in  the 
open  forum. 

The  position  taken  by  the  proponents  of 
unionism  is  that  the  open  shop  question  is 
peculiarly  American.  In  Canada,  and  other 
countries,  the  right  of  workmen  to  bargain,  col- 
lectively, is  conceded  and  it  is  only  in  the 
United  States  that  the  manufacturer  contends 
his  right  to  deal  with  his  workmen  individually. 
Furthermore  they  contend  the  open  shop  is 
misleading  and  not  uniformly  interpreted  even 
by  the  manufacturers,  showing  that  the  preva- 
lent interpretation  was  that  the  open  shop 
means  the  insistence  of  the  manufacturer  in 
dealing  individually  with  labor  and  their  refusal 

219 


220      The  Destiny  of  the  American  City 

to  recognize  unionism.  Also  that  union  labor 
and  non-union  labor  cannot  work  side  by  side 
in  the  same  shop  any  more  than  oil  and  water 
can  mix. 

On  the  other  hand  the  proponents  of  the  open 
shop  claim  the  necessity  of  the  open  shop  on  ac- 
count of  the  labor  troubles  that  have  grown  out 
of  attempt  to  force  the  American  Federation 
idea  upon  manufacturers  and  the  people  of  the 
United  States. 

They  also  claim  that  the  evils  of  unionism 
destroy  initiative  and  ambition,  resulting  in 
practically  no  chance  for  advancement  on  ac- 
count of  the  scale,  also  that  there  are  no  benefits 
for  skilled  labor  and  that  the  idea  of  equal  pay 
and  unequal  results  is  wrong. 

The  average  American  citizen  believes  in 
organization  and  also  believes  that  labor  has  a 
right  to  organize,  the  same  as  capital  or  any 
other  groups  that  have  a  common  interest.  The 
American  public  has  been  extremely  tolerant 
toward  organized  labor  in  its  willingness  to 
concede  almost  every  demand,  and  it  is  only 
when  the  policy  of  the  organization  is  of  such 
a  nature  as  to  show  a  strong  tendency  toward 
infringements  of  rights  and  prerogatives  of 
other  individuals  and  groups  that  demonstra- 
tions of  disapproval,  in  some  practical  form, 
as  in  the  open  shop  movement,  comes  into 
existence. 


The  City  and  the  Open  Shop  221 

This  is  really  what  the  open  shop  movement 
amounts  to  at  the  present  time,  rather  than  any 
disposition  or  attempt  on  the  part  of  individ- 
uals or  groups  to  destroy  labor  organizations. 

There  are  three  tendencies  that  unionism 
must  overcome  before  it  will  obtain  the  full  ap- 
probation of  the  American  public. 

First.  The  tendency  to  limit  both  production 
and  service. 

Second.  The  tendency  to  encourage  the  vio- 
lation of  contracts  on  account  of  no  legal  lia- 
bility, as  an  organization  not  incorporated. 

Third.  The  tendency  to  deny  the  freedom  of 
American  labor  in  seeking  employment,  only 
upon  certain  prescribed  conditions. 

A  great  many  are  firm  in  the  belief  that  the 
life  of  unionism  depends  largely  upon  its  ability 
to  overcome  these  tendencies  and  that  the  pro- 
mulgation of  these  principles  are  an  encroach- 
ment upon  the  rights  of  others,  therefore  un- 
sound and  against  the  public  good. 

The  question  of  the  open  shop  as  a  rival  in- 
stitution in  working  out  the  destiny  of  the 
American  city  makes  it  an  important  question 
for  discussion,  and  as  one  to  be  analyzed  for 
the  purpose  of  ascertaining  what  it  may  do  in 
the  way  of  correcting  abuses  and  eliminating 
evils  that  have  crept  into  the  building  industry, 
during  a  period  of  national  helplessness. 

In  a  general  survey  of  the  field,  we  find  a 


222      The  Destiny  of  the  American  City 

great  many  are  taking  the  position  that  this 
movement  may  become  more  firmly  rooted,  at 
least  into  that  portion  of  labor  used  in  assem- 
bling the  material  that  enters  into  building 
construction,  such  as  carpentry,  plastering, 
masonry  and  so  on,  even  if  it  does  not  enter 
into  that  portion  called  stored  or  frozen  labor, 
which  represents  that  portion  tied  up  in  the 
material  used  in  construction  work. 

During  the  present  period,  every  economy  in 
building  construction  must  be  practiced  in 
order  to  encourage  capital.  In  doing  this,  advo- 
cates of  the  open  shop  contend  that  it  finds 
unionism  burdened  down  with  so  many  limita- 
tions that  artificially  increase  construction  cost 
not  altogether  on  account  of  the  high  wage,  but 
in  the  establishment  of  arbitrary  rules  that  pro- 
hibit members  of  one  craft  on  the  job  from  do- 
ing anything  that,  under  such  rules,  belongs  to 
another  craft,  to  such  extremes  as  to  bring  forth 
strong  protests  from  every  quarter,  or  as  an- 
other says:  "Restrictive  practices  made  for 
waste  for  waste's  sake." 

For  instance  brick  masons,  doing  brick  work, 
must  wait  patiently  for  the  stone  mason  to  set 
the  stone  that  might  be  set  by  the  brick  mason, 
while  patiently  waiting  for  the  stone  mason  to 
get  on  the  job. 

A  glass  to  be  set  in  a  car  sash,  with  glass  fur- 
nished  on   the  job,   ready   to   be   placed   and 


The  City  and  the  Open  Shop  223 

which  could  have  been  done  within  an  hour,  by 
other  workers  on  the  car,  entails  an  additional 
expense,  by  waiting  for  the  specialist  to  set  the 
glass,  with  an  expense  to  the  railroad  company, 
equal  to  half  day  or  full  day  wage,  as  the  wage 
may  be. 

Housing  Plan 

We  find  scattered  throughout  the  land,  indi- 
viduals and  small  groups  anxious  for  various 
reasons  to  get  into  the  building  game. 

These  individuals  and  groups  consist  of  real 
estate  operators,  private  owners  of  building 
sites,  owners  of  outlying  property  ready  for 
development  and  large  subdividers,  as  well  as 
many  others  interested  in  the  public  welfare 
and  material  growth  of  the  municipality  who 
desire  the  expansion  of  the  city  regardless  of 
personal  profit  and  who  are  willing  to  place 
money  into  any  enterprise  that  will  give  it  en- 
couragement and  solve  the  housing  problem. 

We,  also  find  those  individuals  reaching  out 
to  ascertain  in  what  substantial  way  they,  as 
owners  and  financiers  as  well,  may  get  in  closer 
touch  with  actual  building  construction,  in  do- 
ing away  with  the  middle  man,  at  least  to  a 
limited  extent,  so  that  they  may  deal,  more 
directly  with  the  labor  item  that  adds  so  much 
to  the  cost  of  building  construction  at  the  pres- 
ent time. 


224       The  Destiny  of  the  American  City 

Contractors,  it  is  found  in  many  cases,  are 
handicapped  in  being  forced  to  make  conces- 
sions to  labor  that  artificially  increase  the  cost 
of  building  construction.  They  often  find  their 
business  runs  along  a  little  smoother,  with 
fewer  handicaps  and  interruptions,  when  they 
are  able  to  concede  much  to  labor,  and  so  long 
as  they  can  obtain  contracts  at  a  profit,  or  on 
the  cost-plus  plan,  where  same  may  be  charged 
up  to  the  owner,  there  is  no  use,  so  far  as  the 
contractor  is  concerned,  to  worry  very  much 
about  lowering  the  cost  of  building  construc- 
tion. 

But  when  we  reach  the  point  we  are  at  now, 
where  capital  refuses  to  go  into  building  con- 
struction extensively  enough  to  make  up  the 
present  shortage,  without  being  assured  that  it 
can  go  in  without  loss  or  hazard,  it  then  be- 
comes quite  a  different  matter. 

The  question  is  often  asked,  must  the  build- 
ing industry,  like  agriculture,  in  its  deflation 
process,  go  to  the  lowest  round  of  the  ladder 
before  it  can  regain  its  former  supremacy? 

If  the  building  industry  must  go  still  further 
down  before  it  can  go  up,  let  us  hurry  and  go 
down,  so  we  may  speed  the  revival. 

Necessity  is  the  mother  of  invention  in  the 
building  industry,  as  well  as  everything  else, 
so  we  find  these  individuals  and  groups  out- 
lining and  carrying   out   a   plan   of   operation 


The  City  and  the  Open  Shop  225 

which  they  contend  augurs  well  for  lower  cost 
of  building  construction. 

The  first  thing  they  do  is  to  purchase,  at  the 
lowest  possible  price,  in  the  best  market  they 
can  find,  all  the  material  necessary  and  place 
it  on  the  building  site. 

After  this  is  done  the  next  thing  to  do  is  to 
have  it  assembled  into  a  building,  in  accord- 
ance with  the  plans  and  specifications.  Em- 
ploying a  competent  man  to  superintend  the 
construction,  they  seek  for  bids  for  the  different 
kinds  of  work  that  enter  into  its  construction. 

Excavators,  masons  and  carpenters,  plumb- 
ers, plasterers  and  so  on,  all  in  their  turn,  are 
invited  to  submit  these  bids. 

By  the  time  they  have  purchased  their  mate- 
rial they  know  something  about  this  item  of 
cost,  in  other  words,  the  cost  of  the  material 
has  become  a  definite  known  quantity. 

The  next  item  of  cost  for  their  consideration 
is  the  labor  item,  which  even  at  a  definite 
known  scale  they  find  is  more  or  less  illusive 
and  speculative  for  the  reason,  aside  from  the 
scale,  a  great  deal  depends  upon  the  efficiency 
of  the  labor  employed  and  whether  or  not  there 
is  to  be  any  limitation  to  service,  or  in  other 
words,  if  a  day's  labor  is  to  be  measured  out  as 
so  much  work  and  no  more. 

So,  up  to  this  point  the  owner-financier  finds 
labor  is  the  mysterious  and  obscure  item  that 


226      The  Destiny  of  the  American  City 

becomes  much  more  speculative  than  the  cost 
of  material,  which  may  be  determined  with 
more  or  less  accuracy  in  advance. 

In  order  to  lessen,  therefore,  the  hazard  and 
reduce  to  the  minimum  every  shadow  of  limi- 
tation in  production  and  service,  they  take  con- 
trol of  the  labor  item,  making  propositions 
direct  with  the  artisan  to  pay  a  fair,  just  and 
reasonable  wage,  by  day  or  contract. 

In  this  manner  the  owner  becomes  familiar 
with  the  cost  of  labor  items  that  enter  into 
building  construction,  and  is  soon  able  to  tell 
in  advance  what  the  item  is  costing  him  and 
whether  or  not  he  can  afford  to  buy  the  mate- 
rial and  construct  the  building  in  this  manner. 

He  feels,  if  it  can  not  be  done  one  way,  an- 
other should  be  tried. 

"If  the  city  cannot  be  built,"  he  contends, 
"one  way,  it  may  be  built  by  another;  but  in 
any  event  the  city  must  be  built,  and  ultimately 
a  way  must  be  found  that  will  reduce  to  the 
minimum  the  many  impediments  with  which 
the  building  industry  is  encumbered  at  the 
present  time." 

Their  contract  with  labor  calls  for  an  honest 
day's  work  at  a  reasonable  wage  based  upon 
efficiency,  with  no  agreements  as  to  limitation 
of  service.  The  policy  formulated  by  the  own- 
ers is  to  gather  about  them  a  selective  group  of 
efficient  workmen,  increased  wages  to  be  based 


The  City  and  the  Open  Shop  227 

upon  increased  efficiency  of  labor  and  manage- 
ment in  their  production  of  a  building  that  may 
be  profitably  marketed. 

It  is  contended,  if  building  conditions,  under 
the  enforced  rules  of  unionism,  do  not  improve, 
there  is  no  telling  how  formidable  a  plan  this 
will  become  in  the  potential  strength  it  might 
eventually  have  in  competing  with  any  other 
forms,  in  a  community,  by  co-operation  with 
other  similar  individuals  and  groups  in  the  pur- 
chasing of  material  in  quantities  at  reduced 
prices,  standardizing  the  work,  and  the  ex- 
change of  courtesies  and  favors,  permanent  em- 
ployment of  selective  workmen  that  a  common 
interest  of  this  kind  would  naturally  engender. 

If  it  is  then  found  that  all  the  economies 
practiced  in  this  manner,  in  assembling  the  ma- 
terial into  building  construction,  is  not  suffi- 
cient to  produce  a  marketable  product,  then  it 
becomes  incumbent  that  the  stored  or  frozen 
labor  represented  in  the  material  be  analyzed 
to  ascertain  what  economies  may  be  practiced 
on  its  road,  as  raw  material  from  the  forest, 
mine  and  soil,  to  the  finished  product  on  the 
building  site. 

With  material  separated  on  one  side  of  the 
fence  and  labor  on  the  other,  under  this  proc- 
ess, the  exact  location  of  the  sore  spot  causing 
the  trouble  should  be  found,  and  a  remedy  ap- 
plied.   In  criticism  of  the  open  shop  movement, 


228      The  Destiny  of  the  American  City 

referring  to  instances  of  certain  manufacturers 
more  or  less  antagonistic  to  labor  to  whom 
they  attribute  sinister  motives  against  the  right 
to  organize,  and  in  using  the  open  shop  as  an 
entering  wedge,  in  that  direction,  more  than  for 
any  other  purpose,  should  not  be  confused  with 
these  individuals  and  small  groups  who  are  not 
manufacturers  in  the  strict  sense  of  the  word, 
but  only  by  force  of  necessity  are  formulating 
ways  and  means  by  which  they  may  provide  a 
public  necessity,  if  not  resulting  in  much  per- 
sonal gain,  will  entail  at  least  no  serious  loss. 

In  the  former  case  the  manufacturer  is  one 
with  an  expensive  factory  equipment,  with  a 
policy  outlined  in  establishing  permanently  a 
manufacturing  industry,  and  therefore  possibly 
obsessed  with  a  different  viewpoint  than  the 
individuals  or  groups  engaging  in  work  more 
or  less  temporarily  as  an  avocation,  without 
factory  equipment  and  consequently  very  much 
in  the  open,  who  are  merely  assembling  the 
material  so  manufactured,  upon  the  ground 
they  own  and  which  operation  will  possibly 
cease  as  soon  as  property  is  improved.  Then 
to  be  passed  on  to  other  individuals  or  groups, 
who  may  feel  disposed,  if  the  conditions  still 
warrant,  to  follow  out  a  similar  process. 

So  with  these  men,  it  is  found  that  it  is  not 
at  all  a  question  of  unionism  and  open  shop,  but 
a  firm  determination  on  their  part  to  permit 


The  City  and  the  Open  Shop  229 

nothing  to  retard  the  growth  of  the  city,  in  the 
endeavor  to  solve  the  housing  problem  in  some 
practical  way. 

It  is  now  up  to  them  to  find  out  if  the  labor 
and  material  supplied  and  offered  in  a  com- 
munity cannot  be  utilized  in  such  a  manner 
that  a  building  may  be  erected  and  sold  at  a 
price  that  others  will  readily  buy. 

Labor  Supervision 

Another  question  assuming  quite  as  much 
importance  as  the  open  shop  is  the  question  of 
supervising  labor  unions. 

In  the  states  of  Illinois  and  New  York  the 
recent  disclosures  of  the  Dailey  and  the  Lock- 
wood  Legislative  Commission  have  had  a  ten- 
dency of  directing  the  mind  toward  the  advisa- 
bility of  such  a  movement. 

The  Christian  Science  Monitor,  in  comment- 
ing upon  the  situation  in  the  state  of  New  York, 
makes  this  statement: 

"While  it  may  reasonably  be  assumed  that  the 
effort  now  being  made  in  New  York  to  bring 
about  the  enactment  of  legislation  giving  the 
state  industrial  commission  power  to  prevent 
strikes  and  lockouts,  and  to  supervise  labor 
unions  generally,  is  a  direct  result  of  the  dis- 
closures made  in  the  report  of  the  Lockwood 
legislative  commission,  it  is  true  that  the  ten- 
dency in  many  sections  of  the  United  States  is 


230      The  Destiny  of  the  American  City 

to  bring  all  labor  organizations  and  voluntary 
associations  of  workers  definitely  under  the 
supervision  of  the  law.  The  tendency  is  a 
natural  one,  in  view  of  rapidly  changing  indus- 
trial and  social  conditions." 

Labor  itself,  because  it  has,  no  doubt  through 
necessity,  attained  to  a  class  consciousness  as 
clearly  identifiable  as  an  entity  as  are  the  varied 
classes  or  combinations  of  capital,  has  com- 
pelled recognition  of  its  actual  and  potential 
strength,  of  its  power  for  good,  and  of  its  oppo- 
site tendencies.  Gradually  the  understanding 
is  being  gained  that  this  heretofore  innocuous 
entity  has  become  an  active  living  factor  in  the 
body  politic.  There  began,  a  generation  ago, 
a  definite  movement  to  regulate  public  utilities, 
such  as  the  railroads  and  other  agencies  in 
whose  continued  proper  operation  the  rights  of 
the  public  were  found  to  be  paramount,  and  this 
asserted  power  of  supervisory  control  was  ex- 
tended gradually  to  combinations  of  capital  as 
the  wealth  of  powerful  financial  institutions 
and  the  captains  of  industry  became  combined 
in  trusts.  Likewise  the  need  is  now  being 
realized  of  asserting  the  rights  of  the  public  in 
the  control  and  supervision  of  labor  unions, 
which  have  become  no  less  powerful  in  their 
way  than  the  other  combinations  mentioned,  no 
less  necessary  to  the  continued  convenience  and 
prosperity  of  the  people,  and  no  less  harmful 
when  wrongly  directed  and  controlled. 


The  City  and  the  Open  Shop  231 

The  law  will  never  attempt  to  direct  or  con- 
trol the  activities  of  the  individual  in  industry. 
That  is  to  say,  the  artisan  who  pursues  his  voca- 
tion may  do  so  without  molestation,  just  as  the 
farmer  or  the  blacksmith,  in  his  little  shop  at 
the  crossroad  works  or  not  as  he  chooses. 

But  when  the  artisan  surrenders  his  initiative 
to  another  or  to  a  combination  of  individuals 
who  assert  the  right  to  trade  upon  or  to  dictate 
his  industrial  policies,  he  places  himself  log- 
ically and  reasonably  in  the  class  with  other 
trusts  and  combinations  and  may  expect  to  be 
subjected  to  the  measures  of  regulation  and 
control  applied  to  a  general  class,  no  matter 
what  its  component  parts. 

If  labor  unions  were  able  to  cope  with  and 
control  those  within  their  ranks,  by  some  known 
definite  policy,  from  overstepping  the  border 
line  between  that  which  may  be  an  organiza- 
tion benefit  and  that  which  may  be  a  detriment 
to  the  public,  it  would  be  quite  another  thing. 

This  seems  it  has,  so  far,  been  unable  to  do  as 
evidenced  by  the  disclosures  in  both  the  Lock- 
wood  and  Dailey  legislative  commissions  and 
the  deplorable  conditions  of  the  building  in- 
dustry in  New  York,  Chicago  and  other  cities. 

The  same  thing  that  makes  legislative  enact- 
ments necessary  in  placing  a  measure  of  con- 
trol over  the  varied  combinations  of  both  capital 
and  labor  would  make  it  equally  necessary  to 


232      The  Destiny  of  the  American  City 

place  the  same  measure  of  control  over  any 
organization  whenever  it  has  attained  the  posi- 
tion of  recognized  power  for  good  or  evil. 

Likewise,  with  agricultural  and  other  blocs 
as  they  gradually  become  active  living  factors 
in  the  body  politic,  and  approaching,  as  they 
probably  will,  the  same  border  line  between  the 
rights  of  the  organization  and  the  rights  of  the 
public,  the  same  protest  will  arise  against  such 
encroachments  and  the  same  demands  made  for 
the  enactment  of  legislation  that  will  definitely 
and  specifically  define  the  rights  of  both. 

In  favor  of  no  class  organization,  should  the 
supervisory  powers  of  the  government  be  sus- 
pended, especially  when  the  potential  strength 
of  any  organization  becomes  so  great  as  to  be 
within  its  power,  if  it  so  elects,  to  impair  the 
progress  and  economic  development  of  the 
nation  as  a  whole. 

We  are  now  passing  through,  it  seems,  a 
period  in  which  an  active  process  of  separating 
the  body  politic  into  various  groups  and  blocs 
is  making  rapid  headway. 

As  these  varied  class  combinations  are  form- 
ing, in  their  wake  will  naturally  follow  the 
usual  public  protests  and  demands  for  legisla- 
tion that  will  clearly  place  them  in  their  proper 
relations  with  the  public. 

Unionism  itself  is  not  an  evil,  and  if  founded 
upon  sane  economic  laws  could  be  nothing  less 


The  City  and  the  Open  Shop  233 

than  a  great  benefit  to  labor  and  indirectly  in 
its  natural  tendency  towards  a  better  citizen- 
ship a  great  benefit  to  the  nation. 

Grounds  there  may  be  for  fear,  on  the  part 
of  labor  organizations,  that  some  employers  are 
taking  advantage  of  present  economic  condi- 
tions to  offset  some  of  the  difficult  times  they 
have  had  with  labor  within  the  last  few  years. 

A  wrongful  and  very  short-sighted  policy  it 
would  be,  on  the  part  of  employers,  to  embark 
at  the  present  time  on  a  campaign  of  destruc- 
tion, as  well  as  a  very  wrongful  and  short- 
sighted policy,  on  the  part  of  labor,  to  continue 
sacrificing  public  sentiment,  defying  economic 
laws  and  demanding  high  wages  for  less  work. 

The  readjustment  of  wages  and  working  con- 
ditions, to  supply  and  demand,  would  be  the 
result  in  the  destruction  of  unionism.  A  very 
dark  day  this  would  be  for  labor,  as  well  as  an 
indirect  loss  to  the  nation,  in  the  destruction  of 
one  of  its  greatest  aspirations,  a  superior  citizen- 
ship for  American  labor. 

Unionism,  however,  must  base  its  defense  in 
the  attainment  of  this  aspiration  on  economic 
law  and  reason.  In  no  other  way  is  it  possible 
to  succeed. 

Public  opinion  will  in  the  fullness  of  time 
establish  permanently  in  the  economic  structure 
of  the  American  nation  the  fundamental  prin- 
ciples : 


234      The  Destiny  of  the  American  City 

That  no  organization  shall  be  permitted  to 
exalt  class  interest  above  public  welfare; 

That  no  minority  organization  within  the  gov- 
ernment shall  establish  a  minority  rule  over  the 
majority; 

That  labor  organizations  shall  be  permitted 
to  bargain  collectively  and  individually  and  the 
right  to  work  shall  in  no  way  be  abridged. 

If  these  fundamental  principles  were  in  vogue 
now,  many  present-day  problems  would  be 
solved.  When  they  do  come  in  vogue,  which 
they  surely  will,  labor  will  then  come  into  pos- 
session of  its  own  and  public  opinion,  if  noth- 
ing else,  will  fix  its  permanent  status  and  ever 
keep  it  up  to  the  high  standard  of  American 
citizenship,  to  which  it  rightfully  belongs. 

A  Living  and  a  Saving  Wage 

Two  of  the  most  important  economic  demands 
of  the  hour  is  one  on  the  part  of  labor,  urging 
the  payment  of  a  living  and  a  saving  wage,  and 
the  other,  on  the  part  of  capital,  urging  a  larger 
profit  for  the  purpose  of  encouraging  industrial 
activity. 

These  two  demands  will  ever  exist,  so  long 
as  we  are  human  beings.  All  it  really  means 
now,  in  the  present  period  of  inflamed  public 
opinion  and  social  unrest,  is  the  element  of  time 
to  stabilize  and  weld  into  a  unit  of  great  poten- 
tial power  these  two  necessary  elements  of 
prosperity. 


The  City  and  the  Open  Shop  235 

There  is  no  disposition,  whatsoever,  on  the 
part  of  the  American  public  to  deny  labor  a 
living  and  saving  wage,  but  any  one  can  readily 
see  that  labor  and  capital  must  so  combine  and 
treat  with  each  other  in  the  work  of  produc- 
tion that  what  they  manufacture  can  be  sold 
at  a  price  so  that  the  public  will  buy. 

If  the  article  they  produce  is  one  the  public 
will  not  readily  buy  on  account  of  the  price, 
neither  capital  or  labor  will  profit. 

Therefore,  before  labor  gets  its  wage  and 
before  capital  gets  its  profit,  something  must 
not  only  be  produced,  but  also  sold. 

It  makes  no  difference  to  business  how  highly 
labor  is  paid  or  how  large  a  profit  capital  re- 
ceives, so  long  as  they  jointly  act  in  such  man- 
ner in  producing  an  article  at  a  price  that  will 
encourage  a  most  ready  sale. 

Compensation  for  labor  must  necessarily 
depend  upon  what  labor  does  and  not  so  much 
on  what  someone,  or  group,  says  it  should  do. 

Wages  are  not  donations  and  any  demand  for 
a  surplus  wage  on  the  part  of  labor  can  not  be 
met  only  on  the  basis  of  its  actual  earning 
ability. 

American  industry,  genius  and  management 
is  also  entitled  to  its  surplus  profit  in  like  man- 
ner, based  only  upon  its  ability,  efficiency  and 
accomplishments. 

Both  capital  and  labor  are  entitled  to  their 


236  Destiny  of  the  American  City 

reward,  based  upon  enterprise  and  conscien- 
tious endeavor,  which  in  the  final  analysis  is  the 
only  true  American  principle  of  economic 
development  and  adjustment. 

Thrift  and  hard  work,  on  the  part  of  the  peo- 
ple as  a  whole,  is  the  only  true  basis  of  a  nation's 
prosperity.  Neither  capital  nor  labor  can  bring 
it  about  by  omitting  either  one. 

What  may  be  a  living  and  saving  wage  for 
one  may  not  be  a  living  and  saving  wage  for 
another. 

Individual  wants  and  desires  will  ever  re- 
main, in  the  human  makeup,  a  most  important 
factor,  whenever  it  comes  to  the  question  of 
how  much  it  costs  us  to  live  and  how  much  we 
are  able  to  save,  no  difference  what  we  are,  capi- 
talists or  laborers. 

Labor  Radicalism 

Human  society,  the  world  over,  is  made  up 
of  a  mixture  of  conservatism  and  radicalism, 
the  different  degrees  of  which  are  brought 
about  among  the  various  groups  by  the  living 
conditions  under  which  each  is  compelled  to 
conform  in  the  strife  for  existence. 

In  organized  labor  we  find  the  conservative 
and  the  radical,  one  advocating  the  principles 
of  evolution,  the  other  more  militant  followers 
of  the  doctrine,  of  revolution. 

Under  each  of  these  respective  classifications 


The  City  and  the  Open  Shop  237 

may  also  be  found  the  ultra-conservative  and 
the  ultra-radical.  History  is  replete  in  the  ac- 
complishment of  much  good  in  the  world  as  the 
outcome  of  wise  and  progressive  radicalism.  His- 
tory also  teaches  us  of  the  very  great  harm, 
wanton  destruction,  and  abject  misery  resulting 
from  extreme  radicalism  under  the  control  of 
false  and  misdirected  leadership. 

In  one  the  conscientious  desire  in  the  adop- 
tion of  constructive  measures  for  the  accom- 
plishment of  needed  reforms  dominates,  while 
in  the  others  are  included  those  whose  policies 
and  methods  are  truly  destructive,  promising 
nothing  in  return  but  continuous  strife,  turmoil 
and  warfare  upon  which  extreme  radicalism 
universally  thrives  and  when  dispelled,  dies  and 
with  it  the  ultra-radical. 

Ultra-conservatism  makes  the  world  go  too 
slow  for  some  and  ultra-radicalism  too  fast  for 
others.  So  the  conflict  wages  and  will  ever 
continue  to  wage  in  the  endeavor  to  modify  and 
crystallize  both  these  extremes  into  a  more  per- 
fect unit,  based  upon  sane  economic  principles, 
without  which  no  mass  formation  can  ever  be 
successful,  in  using  the  great  potential  force  of 
the  whole,  for  the  purpose  of  conserving  the 
maximum  benefits  for  the  individual  in  the  most 
correct  and  just  proportions. 

The  rejection,  by  the  American  Federation  of 
Labor  by  a  majority  vote  of  the  plan  for  "one 


238      The  Destiny  of  the  American  City 

big  union"  is  a  defeat  for  the  revolutionary 
element  in  organized  labor. 

"Boring  from  within"  loses  out  in  this  test, 
but  its  impress  within  the  ranks  will  still  con- 
tinue to  be  felt,  as  the  whispering  propaganda 
of  radicalism  is  ever  present  and  never  falters 
in  its  ceaseless  and  insidious  drives  for  growth 
and  expansion. 

Controversies  arising  between  capital  and 
labor  resulting  in  strikes  and  lockouts  with  its 
consequent  loss  to  both  labor  and  production, 
are  the  breeding  spots  of  radicalism  in  both 
camps,  in  the  settlement  of  which  radicalism 
balks  in  its  preferment  for  continuous  turmoil 
in  the  refusal  to  adopt  the  only  true  basis  of 
settlement  founded  upon  sane  economic  princi- 
ples of  true  justice  and  equity. 

It  is  safe  to  say,  however,  that  the  average 
American  wage  earner  inside  or  outside  of 
unionism  is  not  for  the  adoption  of  revolution- 
ary methods  in  the  settlement  of  any  of  its  con- 
troversies with  capital. 

To  the  socialists,  syndicalists  or  communists 
dissatisfied  with  our  present  system  of  society, 
it  would  undoubtedly  become  a  powerful  instru- 
ment in  its  overthrow  and  one  which  the  Amer- 
ican wage  earner  will  be  extremely  reluctant 
and  very  slow  to  delegate  to  any  group  or  lead- 
ership with  even  the  remotest  chance  of  its  mis- 
use in  the  destruction  of  the  great  American 
principle. 


The  City  and  the  Open  Shop  239 

The  greatest  example  of  labor  radicalism  in 
the  history  of  the  world  on  a  national  scale,  is 
Russia. 

In  its  gory  record  of  death  and  destruction 
the  world  stands  aghast,  but  vaguely  compre- 
hending or  realizing  its  magnitude  or  its  horror. 

Even  if  one-half  of  the  official  report  of  the 
"Russian  system  of  massacre  of  opponents" 
were  true,  which  places  the  number  put  to 
death  at  over  1,500,000,  equal  to  the  number 
lost  by  France  in  the  late  war,  it  would  have 
established  a  most  horrible  record  of  misuse  of 
power  and  as  a  result  of  misdirected  and  false 
leadership,  a  burning  example  for  all  the  ages 
to  come. 

A  system  having  for  its  underlying  motive 
the  destruction  of  knowledge  and  the  death  of 
the  intellectuals,  becomes  a  most  diabolic  con- 
ception. 

In  this  cold-blooded  slaughter  were  included, 
not  only  doctors,  professors,  priests  and  other 
intellectuals,  but  also  soldiers,  officers  and  with 
them  about  200,000  workmen  and  over  800,000 
peasants,  reacting  as  is  often  the  case  upon  the 
very  class  the  system  was  designed  to  benefit. 

Russia's  one  big  union  idea,  placing  autocratic 
power  in  one  small  group  maintained  by  mili- 
tary force,  overshadows  everything  in  the  way 
of  autocratic  power,  tyrannically  used  that  has 
been  devised  by  any  czar,  king,  or  potentate 
in  all  the  annals  of  human  history. 


240       The  Destiny  of  the  American  City 

America's  greatest  safety  against  a  Russian 
radicalism  is  the  fact  that  in  this  nation  the 
masses  do  not  predominate  in  the  two  extremes 
that  would  naturally  encourage  and  bring  about 
such  a  condition — extreme  wealth  and  extreme 
poverty. 

A  great  and  growing  nation  is  one  that  pre- 
dominates in  a  superior  middle  class  made  up 
of  the  home  builder  and  the  home  owner  which 
now  constitutes  America's  greatest  bulwark  of 
protection  against  extreme  radicalism. 

This  point  is  well  covered  by  Geo.  W.  Hinman 
in  commenting  upon  the  warnings  that  are  now 
being  made  through  press  and  forum  upon  the 
progress  that  Communism  or  Bolshevism  is 
making  in  the  United  States. 

"What  does  it  all  mean?  Are  Lenin  and  Trotsky 
at  the  gates?  Is  the  United  States  in  danger  of 
being  Russianized?  Is  American  business,  occu- 
pation, employment,  livelihood,  bread-winning  in 
peril  of  its  life  or  any  part  of  its  life?  Is  the  busi- 
ness welfare  of  the  United  States  toppling  on  the 
brink  of  the  gulf  that  has  swallowed  Russia,  is 
swallowing  Austria,  and  may  swallow  Germany 
any  day?  If  so,  we  can't  wake  up  too  suddenly 
and  act  too  quickly.  If  not,  we  shall  do  better  to 
settle  our  present  troubles  before  we  give  them 
time  and  attention  to  those  at  least  several  years 
away. 

"For  the  present,  for  some  years  to  come,  Amer- 
icans and  American  business  surely  can  be  confi- 
dent that  no  Communists  or  Bolshevists  will  pull 
down  the  temple  or  even  severely  shake  the  pil- 
lars.   Why?    If  they  can  go  so  far  in  England,  for 


The  City  and  the  Open  Shop  241 

instance,  why  not  here?  For  the  reason,  sug- 
gested in  the  magazine  article.  That  reason  is  the 
American  middle  class — the  class  with  middle- 
sized  incomes,  with  homes  of  their  own,  with  stiff 
convictions  as  to  their  rights  in  their  own  prop- 
erty, and  with  the  American  grit  to  stand  by  them. 

"If  more  public  attention  were  given  to  these 
people  of  middle  class  property,  if  they  could  only 
make  themselves  felt  as  do  those  with  too  much 
money  or  as  do  those  with  no  money  at  all,  there 
would  be  less  business  pessimism  and  infinitely 
greater  business  confidence  in  the  future. 

"That  this  middle  class  stands  like  a  rock  against 
Communism  or  Bolshevism  everybody  knows.  The 
question  then  is:  How  big  is  this  barrier  against 
revolution  in  the  United  States?  The  answer  is 
as  big  as  this : 

"Of  the  11,000,000  families  living  in  their  own 
homes  in  the  United  States,  fully  10,500,000  are 
middle  class  families.  Of  more  than  6,000,000 
farmers  in  the  United  States,  all  but  a  few  thou- 
sand are  middle  class  farmers.  Of  nearly  300,000 
manufacturing  enterprises  in  the  United  States 
fully  225,000  are  middle  class  enterprises. 

"The  steam-heated,  gas-lighted  idea  that  a  man- 
ufacturer in  the  United  States  is  either  a  back- 
room artisan  with  two  helpers  or  a  United  States 
Steel  Corporation;  that  a  farmer  is  either  a  big 
ranchman  or  a  poor  devil  grubbing  a  few  acres; 
that  a  man  in  business  must  be  either  a  million- 
aire-employer inhabiting  a  palace  or  a  white-col- 
lared proletarian  employe  living  in  somebody 
else's  flat  house — this  idea  may  be  used  to  encour- 
age revolutionists  and  to  intimidate  business  men, 
but  it  is  absolutely  false  as  far  as  the  United  States 
is  concerned.  This  is  shown  not  only  by  the  few 
figures  given,  but  also  by  the  income  tax  returns. 

"There  are  a  few  very  rich  men  on  the  income 
tax  list,  several  thousand  fairly  rich  men,  and  more 


242      The  Destiny  of  the  American  City 

than  3,000,000  men  of  middle  class  incomes.  The 
middle  class  incomes  account  for  about  three- 
fourths  of  all  the  incomes  reported.  According  to 
the  last  available  returns,  the  personal  incomes  of 
the  middle  class  are  near  $15,000,000,000  a  year. 

"Many  smaller  incomes  and  five  or  six  thousand 
larger  incomes  make  up  the  rest.  Anybody  with 
time  and  taste  for  figures  can  go  further  and  prove 
more,  but  enough  is  enough. 

"Karl  Marx,  the  prophet  and  philosopher  of 
modern  revolution,  taught  that  the  disappearance 
of  the  middle  class  was  the  signal  for  the  big 
change  in  government,  business  and  everything 
else.  In  this  respect  he  was  a  wise  man.  The  great 
war,  its  losses  of  life  and  its  waste  of  money 
crushed  the  middle  classes  of  several  European 
nations  and  crippled  these  classes  in  others.  With 
what  result?  See  Russia.  See  Germany.  See  Aus- 
tria.    There  is  the  answer. 

"Was  Marx  right?  He  was.  And,  if  he  was  right, 
is  the  United  States,  its  business  prosperity,  its 
industrial  fabric,  its  colossal  going  concern,  in  any 
near  danger  from  the  Revolutionists?  It  is  not — 
not  so  long  as  the  middle  class  in  the  United  States 
is  what  it  is. 

"Eternal  vigilance  is  the  price  of  progress  in  bus- 
iness as  elsewhere.  But  at  a  time  when  American 
business  has  many  large  problems  that  must  be 
met  now,  day  by  day,  it  would  be  foolish  to  treat 
the  Bolshevist  menace  as  the  question  of  the  hour. 
In  four  or  five  years  perhaps,  but  not  now — not 
now." 

Countess  Gizycha  in  her  advice  to  the  Polish 
prince,  was  not  far  wrong  when  she  said :  "Give 
your  peasant  more  land  of  his  own,  for  which 
he  will  fight  and  die,  and  you  make  for  a 
stronger  Poland." 

The  armies  of  France  became  invincible  on 


The  City  and  the  Open  Shop  243 

the  field  of  battle  filled  with  the  warm-hearted 
home-owners  and  land-owners  of  the  nation. 
History  shows  that  France  became  more  pow- 
erful after  the  land  was  passed  out  to  the  peas- 
ants. A  good  thing  for  the  peasant  and  a  most 
profitable  thing  for  France. 

A  man  backed  up  to  his  own  home  and  fire- 
side will  fight  to  the  last  drop  anyone  who 
attempts  to  invade  its  sanctity.  For  no  one  thing 
will  man  fight  longer  and  for  no  one  thing  will 
he  fight  better. 

A  home-owner  is  a  nation's  greatest  asset  and 
a  movement  towards  making  every  alien  a 
home-owner  would  do  more  towards  American- 
ization than  any  other  single  factor.  For  one 
in  possession  of  a  portion  of  his  country's  soil, 
it  becomes  more  his  country  than  it  ever  was 
before. 

The  best  endeavor  on  the  part  of  the  Amer- 
ican Government,  the  state  and  the  municipal- 
ity, should  be  used  so  far  as  it  is  practicable, 
in  the  conversion  of  every  citizen  into  a  home- 
owner, for  in  so  doing  it  makes  for  a  stronger 
America  and  a  stronger  nation. 

It  can  be  seen  in  this  analysis  that  the  home- 
building  industry  is  basic,  not  alone  from  an 
economic  standpoint,  but  also  basic  from  a  na- 
tional safety  viewpoint  in  the  making  of  a  more 
stable,  forcible  and  militant  citizenry  in  the  pa- 
triotic support  of  the  country's  cause. 


244      The  Destiny  of  the  American  City 

Upon  every  municipality  a  very  great  measure 
of  this  responsibility  rests  in  creating  a  condi- 
tion so  far  as  it  is  possible  that  offers  every 
encouragement  to  the  home-builder  and  those 
specializing  in  and  identified  with  the  advance- 
ment of  the  home-ownership  movement. 


XVIII 

ARBITRATIONS  AND  LEGISLA- 
TIVE COMMISSIONS 


This  is  an  arbitration  of  wage  difference 
between  employers  and  employes  in  building  con- 
struction. 

It  is  the  violation  of  no  confidence  to  say  that 
building  construction  had  gotten  into  bad  repute 
in  this  community.  There  was  a  general  disposi- 
tion to  keep  away  from  it  as  a  thing  diseased. 
Capital  avoided  it.  The  wise  dollar  preferred  most 
any  other  form  of  activity,  or  no  activity.  And 
this  applied  to  the  whole  range  of  building  con- 
struction, from  the  cottage  to  the  skyscraper. 

This  attitude  of  the  public,  added  to  the  pro- 
found commercial  and  industrial  depression  gen- 
erally existent,  resulted  in  a  virtual  famine  in 
housing  accommodations  and  brought  about  the 
idleness  of  many  thousands  of  men  willing  to 
work. 

It  was  in  view  of  these  conditions  that  the 
umpire  conceived  it  to  be  his  duty  to  aid  these  par- 
ties to  rehabilitate  the  industry  in  the  esteem  of  the 
public,  the  great  unrepresented  party  to  this  arbi- 
tration, but  nevertheless  the  one  upon  whom  the 
consequences  of  the  award  would  fall. 

The  real  malady  lurked  in  a  maze  of  condi- 
tions artificially  created  to  give  the  party  a  mo- 
nopoly and  in  rules  designed  to  produce  waste  for 
the  mere  sake  of  waste,  all  combining  to  bring 
about  an  insufferable  situation,  not  the  least  bur- 
densome of  which  was  the  jurisdictional  dispute 
between  trade  members  of  the  same  parent  organi- 
zation. 

— Landis. 


ARBITRATIONS  AND  LEGISLA- 
TIVE COMMISSIONS 

Another  question  having  a  direct  bearing 
upon  the  destiny  of  the  American  city  is  what 
can  be  done  in  the  way  of  arbitrations  and  leg- 
islative commissions  in  correcting  abuses  and 
eliminating  the  evils  that  have  crept  into  the 
building  industry. 

In  considering  this  question  we  look  about  to 
see  what  leader  we  have  within  our  midst  to 
whom  we  may  turn  for  guidance  and  in  whom 
the  masses,  in  their  faith,  have  confidence  that 
whatever  decisions  are  made  and  whatever  ver- 
dicts rendered  will  be  based  upon  all  the 
equities  which  the  world  is  now  demanding. 

We  are  now  prone  to  ask  the  question,  what 
would  Washington,  Lincoln,  Roosevelt  and 
other  personalities,  if  alive,  do  if  confronted 
with  the  solution  of  the  many  complex  problems 
of  today? 

In  life  these  men  had  their  critics  and  tra- 
ducers  who  later  garner  their  arguments  with 
references  to  their  exemplary  acts  and  quota- 
tions from  their  prophetic  utterances. 

While  we  are  endeavoring,  as  best  we  can,  to 
live  closely  to  the  fundamental  principles  taught 

247 


248      The  Destiny  of  the  American  City 

us  by  word,  example  and  precept  of  our  illus- 
trious dead,  still  we  must  also  turn  to  and  recog- 
nize the  leadership  of  those  now  living  who  are 
peculiarly  fitted  and  able  to  guide  us  along  the 
pathway  of  truth  and  justice. 

Must  the  world  wait  for  such  personalities  to 
pass  from  our  midst  before  the  principles  and 
fundamentals,  for  which  they  stand,  may  be 
utilized  for  the  public  good,  or  is  human  nature 
so  constituted  in  its  selfishness  and  bigotries  in 
its  social  and  political  egotisms  and  rivalries 
of  the  present-day  routine,  whereby  it  feels  jus- 
tified in  its  endeavor  to  handicap  those  whose 
star  is  in  the  ascendency  for  fear  that  its  bril- 
liancy may  throw  into  obscurity  those  less 
capable  of  leadership,  and  who  are  also  striving 
to  attain  the  heights  of  worldly  fame  and 
power. 

Every  community,  therefore,  should  use  to 
the  utmost  the  very  best  it  has,  not  only  in 
organized  talent,  but  also  in  individual  talent, 
and  join  the  forces  that  are  now  making  up  the 
great  army  of  public  opinion  that  will  hasten 
the  eventful  day  and  ultimately  bring  the  world 
back  into  the  possession  and  the  enjoyment  of 
its  own. 

There  is  no  question  now  so  vital  and  so 
important  for  the  municipality  to  be  solved  as 
the  housing  problem,  the  revival  of  the  building 
industry. 


Arbitrations  and  Legislative  Commissions    249 

The  city  of  Chicago,  in  its  efforts  to  solve  this 
problem,  is  doing  its  utmost  and  using  the  very 
best  it  has,  both  in  organized  and  individual 
talent  in  this  endeavor. 

Landis  Award 

The  city,  in  the  selection  of  Judge  Landis  as 
the  individual,  to  act  in  its  behalf,  should  con- 
sider itself  fortunate  in  having  such  leadership 
from  which  to  select. 

When  difficult  problems  arise  and  have  to  be 
solved,  instinctively  the  public  turns  to  only 
one  kind  of  leadership. 

The  city  of  Chicago,  in  its  efforts  to  stabilize 
the  labor  market  so  that  it  will  have  an  equal 
chance  with  other  municipalities  in  its  civic, 
economic  structure,  has  instinctively  turned  to 
Judge  Landis  to  adjust  controversies  that  are 
destroying  the  building  industry  and  causing 
more  damage  to  the  loss  of  the  general  public 
than  any  other  single  factor. 

In  Judge  Landis  we  have  the  typical  leader, 
fearless,  honest  and  sincere.  While  his  enemies 
may  have  criticized  him  and  his  friends  were 
sometimes  skeptical  about  methods  and  view- 
points taken,  nevertheless  the  public  respect  at 
all  times  for  his  judgment  has  never  dimin- 
ished. 

Lincoln's  strongest  points  were  his  sincerity 
and  honesty.    He  understood  the  soul  of  men, 


250      The  Destiny  of  the  American  City 

but  in  the  advancement  of  himself  used  his 
knowledge  unselfishly  in  the  advancement  also 
of  right  and  justice. 

So  in  Judge  Landis  we  find  the  same  qualities, 
fearlessness,  honesty  and  sincerity,  which  are, 
in  fact,  the  only  yardstick  that  truly  measures 
the  permanent  public  popularity  of  the  indi- 
vidual, both  in  the  quick  and  the  dead. 

In  submitting  the  deadlock  to  Judge  Landis, 
both  sides,  by  mutual  consent,  agreed  to  abide 
by  his  decision. 

In  his  analysis  he  found  that  wages  were  less 
important  than  wasteful  practices,  even  in  ulti- 
mate costs. 

In  dealing  with  this  problem  he  made  alter- 
native awards,  with  wages  reduced  in  both 
cases. 

The  decrease  from  war  wage  rate,  however, 
would  be  relatively  small  where  the  unions 
would  assent  to  elimination  of  waste,  enforced 
by  union  rules,  and  when  such  assent  was  re- 
fused wages  would  be  made  lower  to  compen- 
sate for  extra  cost  of  waste  compelling  rules. 

The  majority  of  the  unions  took  the  first,  but 
the  carpenters  and  a  few  others  revolted  against 
the  award  because  they  would  not  yield  their 
restrictive  practices  made  for  "waste  for  waste's 
sake." 

A  citizens'  committee  was  formed  to  enforce 
the  award  and  twenty-two  building  trades  stuck 
by  it. 


Arbitrations  and  Legislative  Commissions    251 

The  citizens  of  Chicago  believe  that  the  award 
handed  down  by  Judge  Landis,  if  lived  up  to 
honestly  by  both  contractors  and  unions,  would 
make  impossible  the  graft  and  combinations 
which  have  been  rife  for  years,  and  would  per- 
manently place  the  building  industry  in  Chicago 
on  a  basis  fair  to  the  working  man,  contractor 
and  the  public. 

The  principles  upon  which  this  award  was 
made  are  as  follows: 

(1)  Peaceful  adjustment  of  disputes;  (2)  no 
stoppage  of  work  either  individually  or  collec- 
tively; (3)  non-union  men  may  work  with  union 
men  in  the  case  of  scarcity  of  help  until  such 
time  as  union  men  may  be  obtained;  (4)  any 
journeyman  may  use  in  his  work  the  tools  of 
any  other  trade;  (5)  small  tasks  of  thirty 
minutes'  duration  in  any  one  day  belonging  to 
any  trade  may  be  performed  by  any  other  trade 
at  the  discretion  of  the  employer;  (6)  first  two 
and  one-half  hours  over  time  at  one  and  one- 
half  times  the  regular  wage,  beyond  this,  Satur- 
day afternoon,  Sunday  and  holidays,  double  the 
regular  rate.  Shift  work  will  be  paid  at  the 
regular  rate;  (7)  no  restriction  of  output.  No 
restriction  as  to  the  use  of  machinery,  methods 
or  appliances.  No  restriction  against  any  raw 
material  or  manufactured  material,  except 
prison  made;  (8)  employers  may  employ  or  dis- 
charge whomsoever  of  the  union  they  please, 


252        The  Destiny  of  the  American  City 

and  employes  may  work  for  whomsoever  they 
see  fit;  (9)  the  foreman  is  to  be  exclusively  the 
agent  of  the  owner;  (10)  nothing  shall  prohibit 
an  employer  or  one  member  of  the  firm  from 
working  on  his  own  job. 

In  the  building  trades  that  did  not  stick  by 
the  award,  open  shop  conditions  were  installed, 
the  award  having  made  provision  for  such  con- 
tingencies, when  a  union  failed  to  supply  men, 
as  required  under  the  terms  of  the  award. 

Building  activity  took  on  new  life  and  when 
some  of  the  contractors,  seeing  the  scarcity  of 
labor  developing,  threw  aside  the  Landis  award 
wage  rate  and  offered  a  higher  one. 

Naturally  the  position  of  the  revolting  unions 
were  strengthened  thereby,  weakening  those 
who  had  lived  up  to  the  agreement. 

The  carpenters  threatened  to  secede  from  the 
Builders  Trade  Council  if  it  did  not  throw  over- 
board the  award. 

The  protest  of  Chicago  building  trades  union 
members  to  the  reduction  in  wage  per  hour  and 
the  elimination  of  restrictive  working  rules 
under  the  Landis  decision  is  answered  most 
effectively  by  figures  just  issued  from  the  office 
of  Building  Commissioner  Bostrom.  "These 
figures  for  February  (1922)  show  an  increase  of 
58  per  cent  in  apartment  building  permits  over 
January.  The  total  of  634  permits  issued  last 
month   for   apartments,    residences,    industrial 


Arbitrations  and  Legislative  Commissions    253 

and  miscellaneous  buildings  was  more  than 
twice  the  number  issued  in  February  a  year 
ago. 

"There  could  hardly  be  better  evidence  of  the 
practical  value  of  the  Landis  decision,  both  for 
the  public  and  for  the  tradesmen  whose  wages 
were  reduced  by  it.  Of  course  the  Landis  de- 
cision is  not  entirely  responsible,  but  it  helped. 
Assuming,  for  the  sake  of  the  discussion,  that 
the  total  reduction  of  the  workers'  pay  is  20  per 
cent,  the  increased  amount  of  building  under 
the  award  means  that  workers  in  the  building 
trades  here  are  earning  a  total  of  60  per  cent 
more  than  they  earned  in  the  same  period  a  year 
ago.  In  other  words,  it  might  be  figured  roughly 
that  if  30,000  men  were  earning  $7,500,000  in 
March  a  year  ago,  60,000  men  will  be  able  to 
earn  $12,000,000  this  March. 

"Certainly  that  is  not  only  good  for  the  com- 
munity, but  good  for  the  building  trades 
workers  as  a  whole.  In  the  first  place,  it  prom- 
ises to  reduce  rents  by  making  more  homes 
available,  thus  making  not  only  the  trades  union 
man's  money  go  further,  but  doing  the  same 
thing  for  every  other  worker.  In  the  second 
place,  it  increases  the  purchasing  power  of  the 
building  tradesmen  by  some  $4,500,000,  thus 
helping  to  improve  demand  and  start  wheels  to 
turning  in  all  other  industries.  It  means  more 
work,  and  more  work  is  the  solution  of  most  of 
our  economic  difficulties." 


254      The  Destiny  of  the  American  City 

Many  instances  are  occurring,  however,  to 
prove  how  inexorable  is  the  law  of  supply  and 
demand.  No  difference  at  what  price  labor  and 
material  is  fixed  by  man,  court  or  government, 
when  the  demand  for  both  reaches  a  point 
where  the  supply  falls  short  of  the  demand  and 
the  demand  for  a  given  period  becomes  greater 
than  the  supply  of  labor  and  material,  the  price 
of  both  advances  beyond  the  fixed  rate,  and 
when  the  lever  is  reversed,  it  falls  below. 

There  seems  to  be  no  way  to  get  away  from 
this  fixed  fundamental  principle  unless  we  act 
upon  the  advice  of  the  wag  who  offers  the  sug- 
gestion that  the  only  thing  to  do  is  to  repeal 
the  law  of  supply  and  demand. 

The  willingness  and  ability  to  pay  the  price, 
on  the  part  of  those  entering  an  abnormal  mar- 
ket, in  order  to  speed  up  production  and  com- 
plete work  within  a  certain  prescribed  period, 
if  numerous  enough,  naturally  forces  upward 
the  cost  of  both  labor  and  material. 

Legislative  Commissions 

Another  factor  doing  its  part  in  correcting 
the  abuses  that  have  crept  into  the  building  in- 
dustry, and  one  which  has  a  very  important 
bearing  in  working  out  the  destiny  of  the  Amer- 
ican city,  is  the  Dailey  Legislative  Commission 
of  the  State  of  Illinois. 

Corrupt  practices  of  the  associations  of  mate- 


Arbitrations  and  Legislative  Commissions    255 

rial  men  and  the  criminal  operator  of  dishonest 
business  agents  are  responsible  for  the  stagna- 
tion in  the  Chicago  building  industry,  says  a 
preliminary  report  of  the  Dailey  commission 
recently  submitted  to  the  state  legislature 
which  continues  as  follows: 

"Artificial  burdens  placed  upon  building  by 
crooked  business  agents  and  criminal  associa- 
tions connected  with  the  building  industry  have 
increased  the  cost  of  building  in  Chicago  at  least 
30  per  cent. 

"These  agencies  are  largely  responsible  for 
the  housing  shortage  in  Chicago,  the  almost 
complete  cessation  of  building  and  increased 
rentals. 

"Notice  is  served  upon  the  associations  of 
building  material  men  in  the  report  that  the 
permanent  commission  plans  a  thorough  inves- 
tigation of  their  price-fixing  methods. 

"The  commission  charges  these  interests  by 
'desperate  efforts'  defeated  the  proposed  state 
law  to  curb  criminal  combinations  in  restraint 
of  trade  and  impose  severe  penalties  for  viola- 
tions. 

"Associations  of  material  men  have  been 
guilty  of  practices  as  hurtful  to  building  opera- 
tions as  the  criminal  practices  of  crooked  busi- 
ness agents,  the  report  reads. 

"The  financial  burdens  imposed  upon  the 
building    industry    by    these    associations    are 


256       The  Destiny  of  the  American  City 

greater  even  than  those  imposed  by  the  grafting 
business  agents. 

"Exchange  of  cost  information,  pooling  of 
bids,  exchange  of  bids  and  price  lists,  reporting 
to  each  other  of  bids  and  contracts,  average 
costs  systems,  restrictive  agreements  with  labor 
unions,  agreements  with  dishonest  labor  leaders 
and  many  forms  of  'co-operative  competition' 
and  other  euphemisms  have  served  as  devices 
for  the  restraint  of  trade  and  the  inflation  of 
prices  of  building  materials. 

"Recently,  as  a  result  of  bringing  to  light  vio- 
lations of  law  as  detailed  in  the  testimony  of 
witnesses  before  the  commission,  a  special 
grand  jury  was  empaneled  on  the  petition  of 
the  state's  attorney  of  Cook  County.  To  date 
the  grand  jury  has  already  returned  twenty- 
four  indictments  against  forty  persons.  Some 
of  the  defendants  have  been  indicted  for  several 
transactions,  and  the  total  number  of  parties  de- 
fendant is  sixty-two." 

In  the  treatment  of  the  Landis  award  and  the 
Dailey  and  Lockwood  Legislative  Commission 
here,  it  is  done  in  order  to  show  the  many  fac- 
tors that  are  at  work  throughout  the  land  and 
the  many  angles  from  which  the  subject  is  being 
treated  by  different  individuals  and  groups 
everywhere,  each  adding  its  moiety  of  benefits 
to  the  common  good,  all  of  which  are  gradually 
crystallizing  public  opinion  into  the  formation 


Arbitrations  and  Legislative  Commissions    257 

of  a  common  policy  and  unit  of  action  that 
should  eventually  correct  the  abuses  and  elim- 
inate many  of  the  evils  that  have  been  heaped 
upon  the  public  during  a  period  of  national 
helplessness. 

Municipal  Waste 

In  this  connection  our  minds  involuntarily 
turn  to  some  of  the  notable  instances  of  federal, 
state  and  municipal  waste  of  public  money 
caused  by  the  laxity  and  looseness  of  business 
methods  employed  by  officials  in  placing  con- 
tracts for  public  improvements. 

Probably  one  of  the  most  notable  instances 
of  the  kind  engaging  the  public  attention  at 
the  present  time  is  the  controversy  with  the 
board  of  local  improvements  of  Chicago,  arising 
out  of  the  charges  for  expert  services,  authorized 
by  the  board,  amounting  to  nearly  three  mil- 
lion dollars,  whereby  it  is  alleged  that  the  fee 
is  greatly  in  excess  of  the  services  rendered. 

The  objectors  contend  that  the  maximum  cost 
involved  by  those  contending  for  the  few  will 
not  exceed  fifty  thousand  dollars,  making  the 
variance  between  the  two  amounts  so  great  that 
the  attention  of  the  public  is  naturally  aroused 
and  interested  in  seeing  what  the  results  will 
be  when  tested  out  on  its  merits. 

As  to  the  merits  of  this  discussion,  we  know 
nothing.     There  may  be  no  moral   turpitude 

17 


258       The  Destiny  of  the  American  City 

whatsoever  on  the  part  of  any  of  the  officials 
or  others  in  connection  with  the  transaction; 
but  if  there  is  this  approximate  variance  be- 
tween the  actual  cost  to  do  the  work  and  the 
fee  charged  it  shows  at  least  a  woeful  laxity 
and  looseness  in  business  methods  that  munici- 
palities will  sooner  or  later  be  compelled  to  take 
notice  and  correct. 

It  becomes  now  the  imperative  duty,  there- 
fore, on  the  part  of  the  ones  who  are  compelled 
to  pay  for  needless  waste  and  improvident  busi- 
ness methods,  to  inaugurate  a  movement  big 
enough  and  broad  enough  to  study  and  analyze 
this  serious  handicap  in  the  development  of  our 
cities,  whereby  some  check  may  be  placed, 
somewhere,  somehow,  in  a  body  of  unimpeach- 
able character  that  will  make  conditions  of  this 
kind  practically  impossible. 

Following  closely  in  the  wake  of  the  expert 
fee  controversy  comes  the  school  board  scandal, 
arousing  the  public  consciousness  to  the  fact 
that  there  should  be  not  only  a  penalty  pre- 
scribed for  the  betrayal  of  a  public  trust,  but 
something  done  in  the  way  of  a  preventive  for 
the  looting  of  a  public  fund. 

"The  demagogues  are  in  business  politics  for 
their  own  good,"  says  a  statesman  in  comment- 
ing on  prevailing  conditions,  "exploiting  the 
people  in  their  own  name  for  political  power 
and  personal  interest,  playing  upon  the  credulity 


Arbitrations  and  Legislative  Commissions    259 

of  the  people  who  think  that  if  a  politician  talks 
loudly  enough  of  their  welfare,  he  does  not  have 
his  own  interest  in  view. 

"We  have  demagogues  talking  of  the  con- 
scription of  wealth,  of  the  rule  of  the  people  and 
of  the  overthrow  of  capitalistic  intrigue,  and 
working  constantly  for  their  own  gain  at  the 
public  expense.  The  expert  fee  scandals,  the 
school  board  scandals,  the  scandals  which  re- 
veal how  public  money  disappears  in  private 
hands,  unmask  them. 

"In  Russia  the  arch  demagogues  reduced  a 
great  nation  to  famine,  plague  and  ruin  to  gain 
the  power  and  wealth  which  they  craved. 

"Demagoguey  is  the  most  dangerous  element 
which  can  be  introduced  into  a  state,  one  of  the 
most  easily  introduced  and  the  most  costly." 


XIX 

DESTRUCTION  vs.   CONSTRUCTION 


The  desire  for  the  comforts  and  luxuries  of  life 
are  the  human  impulses  if  rightly  pursued  along 
constructive  rather  than  destructive  lines,  that  rep- 
resent a  beneficient  force  in  the  upbuilding  of  a 
nation,  resulting  in  the  creation  and  acquisition  of 
wealth. 

After  the  creation  of  wealth,  then  comes  the 
problem  of  re-distribution,  so  that  the  benefits 
accrued  shall  reach  a  greater  number  and  not  per- 
petually confined  to  the  uses  of  a  selective  few. 

In  attempting  to  accomplish  this  purpose,  two 
ways  are  now  on  trial,  one  by  revolution  and  the 
other  by  evolution.  The  former  in  the  use  of  force, 
by  attacking  the  functions  of  production  and  dis- 
tribution at  its  source,  resulting  in  the  destruction 
instead  of  the  distribution  of  wealth,  with  suffer- 
ing and  misery,  to  both  rich  and  poor  alike,  known 
as  the  Russian  way. 

The  other  by  evolution,  in  not  destroying  the 
incentive  to  create,  by  reducing  all  to  a  common 
level,  but  in  the  application  of  sane  economic  prin- 
ciples, forcing  through  wise  legislative  enactments, 
revising  taxation,  so  modified  so  as  to  cause  no 
serious  restraints  in  industry,  so  graduated  so  as 
to  create  no  inequities,  so  adjusted  so  as  to  check 
inordinate  accumulations  and  the  piling  up  of  vast 
wealth  in  the  hands  of  the  non-producer. 

— Municipal  Problems. 


DESTRUCTION  vs.   CONSTRUCTION 

In  the  fight  against  building  construction  in 
the  city  of  Chicago  under  the  Landis  award, 
force  and  violence  have  been  substituted  for  law 
and  order,  finally  culminating,  not  only  in  great 
destruction  of  property,  but  also  injury  to  scores 
of  people  and  in  loss  of  life. 

Labor  organizations  in  this  city  have  been  in- 
fested for  some  time  with  an  anarchistic  ele- 
ment who  pose  as  labor  leaders,  who  have 
undertaken  to  prevent  all  building  construction 
unless  it  is  carried  on  in  terms  and  conditions 
that  will  yield  them  tribute. 

These  men  care  nothing  for  the  real  interest 
of  labor  so  long  as  they  may  perpetuate  condi- 
tions under  which  they  can  live  easily  by  graft 
and  extortion. 

The  chief  of  police,  in  his  report,  makes  the 
following  statement: 

"For  several  years  past  a  gang  of  profes- 
sional thugs  have  gradually  gained  executive 
control  of  a  number  of  Chicago  labor  unions. 
Through  intimidation  and  violence  they  have 
worked  their  way  into  the  inner  councils  of  cer- 
tain unions  until  they  have  become  absolute  dic- 
tators of  the  terms  on  which  a  man  may  work, 

263 


264       The  Destiny  of  the  American  City 

for  whom  he  may  work,  when  and  where.  This 
grip  is  so  tight  that  by  systematic  blackmail  of 
workers  and  their  employers  alike  they  have 
accumulated  large  sums  of  money,  which  they 
have  used  in  bribery  and  corruption  on  a  scale 
so  enormous  that  they  have  been  almost  im- 
mune from  successful  prosecution." 

In  commenting  upon  these  conditions  the 
Buffalo  Express  publishes  the  following: 

"Chicago's  labor  war  assumed  more  serious 
proportions  recently  when  two  policemen  were 
shot  and  killed,  another  wounded,  and  two 
buildings  were  bombed.  The  incidents  were  in 
widely  separated  parts  of  the  city,  but  there  is 
hardly  a  doubt  that  they  were  part  of  a  cam- 
paign of  organized  terrorism. 

"Dissatisfaction  among  the  more  radical  labor 
men  over  the  Landis  wage  award  started  the 
war,  which  already  has  resulted  in  the  destruc- 
tion of  thousands  of  dollars'  worth  of  property 
and  the  injury  of  scores  of  people,  besides  the 
loss  in  wages.  Judge  K.  M.  Landis  handed  down 
an  award  as  arbiter  in  the  dispute  between 
building  trades  workers  and  employers  which 
was  deeply  resented  by  the  union  men  because 
it  condemned  utterly  those  absurd  rules,  an  out- 
growth of  the  war,  which  mulcted  the  builder 
and  did  no  good  to  the  workers  since  they  bred 
a  belief  that  the  less  work  done  for  the  wages 
paid  the  more  work  there  would  be.    This  is  an 


Destruction  vs.  Construction  265 

imported  principle — the  ca'canny  system  that 
has  been  the  curse  of  British  unionism  for 
decades. 

"The  killing  of  these  two  men  ought  to  awake 
Chicago  to  the  necessity  of  ending  the  destruc- 
tive labor  war.  The  more  sober  minded  of  the 
labor  men  themselves  ought  to  begin  to  realize 
that  they  have  been  pursuing  a  course  of  the 
utmost  folly." 

The  Twin  City  Review,  a  labor  paper  pub- 
lished at  Champaign,  Illinois,  in  commenting  on 
the  same  deplorable  conditions,  takes  the  fol- 
lowing commendable  position,  indicating  an 
awakening  on  the  part  of  reputable  labor  lead- 
ers of  the  serious  after-effects  such  conditions 
may  have  on  organized  labor. 

"Union  labor  has  once  more  been  slugged  and 
dynamited — and  in  the  house  of  its  friends. 
Once  more  the  grafting,  law-defying  crooks,  pos- 
ing as  labor  leaders  in  Chicago,  have  brought 
disgrace  upon  a  movement  that  for  years  has 
striven  to  accomplish  something  for  the  men 
and  women  who  toil  for  a  daily  wage.  And  the 
public,  upon  which  all  movements  must  depend 
for  encouragement  and  support  if  they  progress, 
quickly,  unthinkingly  brands  the  Chicago  type 
of  thugs  as  representative  of  the  organized  labor 
leadership  throughout  the  country,  forgetting 
the  big  things  accomplished. 

"For  the  Chicago  situation,  at  present,  there 


266       The  Destiny  of  the  American  City 

is  cause  for  just  resentment  and  criticism.  It 
is  true  that  the  decent  rank  and  file  are  fearful 
to  express  opposition  or  propose  any  plan  seek- 
ing to  bring  about  the  needed  house-cleaning. 
Personal  violence,  upon  the  part  of  the  crooks' 
gangsters,  has  been  and  will  be  the  immediate 
answer.  Interlocking  organizations  composed 
of  politicians,  gamblers,  office  holders  and  police 
officers  of  high  and  low  degree  have  brought 
about  a  condition  that  is  unspeakable.  Decent 
union  men  and  women  must  bear  the  brunt  of 
criticism,  but  are  powerless  to  effect  a  remedy. 
It  is  a  situation  typical  of  Chicago — and  the  peo- 
ple as  a  whole,  electing  their  officials  of  their 
own  free  will,  are  on  the  way  to  purge  Chicago 
and  its  labor  movement  of  leadership  upon  the 
part  of  men  who  have  convict  records.  It  lies 
solely  with  the  officers  of  the  American  Federa- 
tion of  Labor  and  the  heads  of  international 
unions  to  take  the  stand  that  will  unseat  the 
"card-holders"  of  this  type  and  place  in  their 
stead  decent,  honest,  law-abiding  trades  union- 
ists who  really  represent  the  principles  for 
which  organized  labor  stands.  To  further  stand 
sponsor  for  men  of  this  type  merely  because 
they  possess  a  little  local  power  and  hold  union 
cards  is  bringing  disaster  to  the  labor  move- 
ment throughout  the  land." 

From  the  forum  and  pulpit  in  Sunday  meet- 
ings throughout  the  land,  unionism  has  been  re- 


Destruction  vs.  Construction  267 

counting  the  many  good  things  it  has  done  for 
humanity. 

It  has  now  become  imperative  that  it  add  one 
more  good  thing  to  its  calendar  of  accomplish- 
ments, and  that  is  the  purging  from  within  its 
ranks  the  thug  leadership  that  has  made  a  con- 
dition of  this  kind  possible. 

If  unionism  fails  to  make  a  consistent,  con- 
scientious and  heroic  effort  in  abatement  of 
these  internal  conditions,  organized  labor  will 
have  received  a  most  terrific  blow. 

The  American  people  will  tolerate  a  great 
many  things  in  a  peaceful  and  orderly  settle- 
ment of  its  economic  affairs,  but  there  are  two 
things  it  will  never  stand  for,  and  that  is  murder 
and  incendiarism. 

Strikes  and  Lockouts 

Labor's  right  to  quit  work  individually  or  in 
concert  is  unquestioned.  In  other  words,  its 
right  to  strike  is  the  recognized  law  of  the  land. 

So  far  as  labor's  relation  with  the  govern- 
ment on  this  point  is  concerned,  there  is  nothing 
that  the  government  can  do  that  would  in  any 
way  abridge  this  right. 

Up  to  this  point  the  government  has  no  dis- 
pute with  labor.  On  the  other  hand,  when  an 
employe  quits  work  and  attempts  to  go  one  step 
further  by  looking  to  the  government  to  concede 
him  the  right  to  prevent,  if  necessary  by  vio- 


268       The  Destiny  of  the  American  City 

lence,  anyone  from  taking  his  place,  he  is  asking 
for  something  which  the  government  at  no  time' 
will  ever  agree  to  do. 

A  strike  is  labor's  greatest  liability,  an  irre- 
parable loss;  a  loss  of  time  that  never  can  be 
regained. 

The  right  to  strike  does  not  imply  or  carry 
with  it  a  right  to  commit  unlawful  acts  of  vio- 
lence. 

The  object  and  purpose  of  government  is  to 
recognize  a  state  of  irresponsible  warfare  when 
it  exists,  and  to  use,  at  once,  the  power  so  dele- 
gated in  looking  after  the  public  safety  and 
general  welfare  of  the  nation. 

Individuals  have  many  rights  which  they  may 
or  may  not  elect  to  use  at  their  discretion. 

In  the  exercise  of  many  of  these  rights  it  is 
oftentimes  done  to  the  detriment  of  the  in- 
dividual. 

No  individual  should  so  exercise  a  right  that 
creates  an  injury  to  himself  or  another,  no  dif- 
ference how  inalienable  a  right  it  may  be. 

In  exercising  the  right  to  strike,  facts  will  ever 
verify  the  statement  that  strikes  and  lockouts 
stand  for  destruction  and  against  construction. 

They  destroy  life  and  property,  create  sick- 
ness, hunger  and  misery.  They  are  an  eco- 
nomic loss  to  the  nation,  both  for  capital  and 
labor;  not  only  a  financial,  but  a  moral  and 
physical  loss. 


Destruction  vs.  Construction  269 

A  strike  lowers  production  and  raises  the  cost 
of  living,  and  when  directed  against  a  basic  in- 
dustry is  a  direct  attack  on  the  nation,  the  pull- 
ing away  of  the  foundation  of  industry  so  that 
the  superstructure  may  topple,  regardless  of 
what  may  be  destroyed. 

A  strike  is  never  an  asset,  but  is  always  a 
liability,  no  difference  which  side  loses  or 
which  side  wins. 

Strikes  appeal  to  physical  and  brute  force  and 
very  seldom  to  the  intelligence  of  the  classes, 
and  are  more  often  the  result  of  misdirected 
and  limited  leadership,  rather  than  the  unani- 
mous desire  upon  the  part  of  the  whole  to  par- 
ticipate. 

Industries  that  perform  a  quasi-public  func- 
tion should  ever  be  kept  within  such  effective 
control  by  the  government,  as  is  necessary  to 
public  safety  and  welfare. 


XX 

CITY  ZONING 


City  zoning  is  really  a  branch  of  city  planning, 
although  in  some  localities  they  have  been  inaugu- 
rated as  separate  movements.  The  general  idea 
which  lies  back  of  each — that  a  city  to  be  beautiful 
must  also  be  planned,  efficient  and  directed  in  its 
growth — has  spread  rapidly.  All  of  the  sixteen 
largest  cities  of  this  country  have  undertaken  some 
form  of  city  planning,  either  the  replanning  and 
improvement  of  existing  arrangements  or  the  fore- 
sighted  planning  for  future  development.  An  arti- 
cle in  the  National  Real  Estate  Journal  states  that 
before  1900  only  two  cities  had  begun  city  plan- 
ning. Between  1901  and  1905  three  more  cities 
took  it  up.  Twenty-six  cities  joined  the  movement 
between  1906  and  1910;  thirty-eight  cities  between 
1911  and  1915;  and  fifty-one  cities  between  1916 
and  1920.  It  is  expected  that  more  than  one  hun- 
dred cities  will  start  similar  work  before  1925. 

At  first  city  plans  were  prepared  without  the 
aid  of  special  commissions.  Now  there  is  nearly 
always  a  separate,  nonpolitical  city  plan  commis- 
sion with  some  state-city  commission. 

This  work  insures  a  finer  municipal  develop- 
ment from  the  standpoint  of  appearance.  It  bene- 
fits industrial  and  economical  progress  and  protects 
the  home  owner. 

The  American  City  of  the  future  should  be 
a  more  orderly,  more  healthful,  more  efficient  and 
more  beautiful  place  than  any  yet  developed. 

—Elkhart  Truth. 


CITY  ZONING 

City  zoning,  while  one  of  our  newest  munici- 
pal problems,  is  also  destined  to  be  a  very  im- 
portant one  for  the  careful  consideration  of  the 
city  dweller. 

The  city  of  New  York,  the  leader  of  the  move- 
ment in  America,  originally  established  a  build- 
ing zone  with  official  maps  showing  districts 
within  which  certain  prescribed  uses,  length  and 
sizes  of  buildings  were  prohibited. 

Other  cities,  from  time  to  time,  have  followed 
in  the  wake,  placing  the  regulations  of  these 
matters  under  police  powers  after  first  obtain- 
ing the  zoning  power  from  the  legislature. 

The  frequent  efforts,  in  the  past,  to  secure 
legislation  for  the  purpose  of  protecting  the  resi- 
dential district  from  encroachment,  was  the 
forerunner  of  the  city  zoning  movement. 

To  promote  the  prosperity  and  welfare  of  a 
municipality  is  a  primary  object  of  zoning.  In 
order  to  accomplish  this  it  is  necessary  to  create 
and  establish,  under  proper  classification,  condi- 
tions favorable,  not  only  for  a  proper  prescribed 
residential  environment,  but  also  the  encourage- 
ment of  industrial  and  commercial  enterprises 
as  well. 

273 
IS 


274       The  Destiny  of  the  American  City 

No  one  questions  that  a  great  public  service 
may  be  rendered  in  the  holding  of  urban  land 
for  future  use,  and  that  forcing  land  into  im- 
mediate use  that  should  be  held  for  some  future 
and  appropriate  use  may  be  directly  against 
public  interest. 

Zoning  laws,  to  regulate,  systematize  and 
stabilize  the  growth  of  cities,  occupy  a  perma- 
nent place  in  the  public  thought  today. 

Lack  of  proper  zoning  laws  has  not  only  cost 
American  cities  millions  of  dollars  in  property 
values,  but  often  cost  the  life  and  health  itself 
through  congestion  and  its  incidental  use. 

It  is  an  economic  problem,  one  that  not  only 
prevents  depreciation  on  both  buildings  and 
grounds,  but  stabilizes  its  building  use  and 
greatly  enhances  real  estate  values  as  well. 

Adopting  city  zoning  provides  more  orderly 
districts  for  the  municipality,  more  harmonious 
conditions  under  which  to  transact  business  and 
a  most  satisfactory  living  environment.  It  has 
been  estimated  that  the  unnecessary  loss  of 
property  throughout  the  nation,  due  to  lack  of 
proper  zoning  laws,  amounts  to  a  half  million 
dollars  annually. 

It  is  apparent,  even  to  the  most  casual  ob- 
server, that  the  most  important  feature  of  the 
work  on  the  part  of  the  commission  is  the  deter- 
mination of  the  proper  use  of  districts  which 
makes  it  necessary  to  thoroughly  study  the  con- 


City  Zoning  275 

ditions  that  now  exist  in  order  that  provisions, 
outlined  for  the  future  benefits  to  be  derived, 
may  rest  on  a  most  stable  foundation,  consistent 
with  the  best  development  of  the  city  as  a  whole. 

Freedom  from  unnecessary  traffic  and  noise, 
sanitation  for  all,  and  safety  to  children  for  both 
life  and  limb,  are  some  of  the  benefits  of  zoning 
for  residential  areas. 

Before  a  city  can  be  properly  zoned  an  inven- 
tory of  stock  must  be  taken  of  its  building 
development.  The  next  step  to  take  is  to  deter- 
mine what  kind  of  development  is  best  suited 
for  the  general  prosperity  of  the  city. 

The  invasion  of  residential  districts,  by  busi- 
ness and  industries,  should  not  be  permitted 
because  it  depreciates  the  value  of  residence 
property.  On  the  one  hand  property  zoned  is 
unchangeable  and  of  a  more  stable  value,  giving 
greater  security  to  the  investor.  On  the  other 
hand,  mixed  residence,  business  and  manufac- 
turing districts  make  unsightly  and  unsanitary 
breeding  places  for  crimes  and  disease. 

The  zoning  law  does  not  contemplate  the  re- 
covery of  the  dollars  lost  in  the  past  on  account 
of  improper  developed  growth  of  the  city,  but 
the  aim  is  to  prevent  similar  mistakes  in  the 
future. 

It  cannot  escape  existing  business  and  indus- 
try, but  can  prevent  further  encroachments. 

The  zoning  law  for  the  State  of  Illinois,  passed 


276       The  Destiny  of  the  American  City 

by  the  legislature  in  1922,  a  copy  of  which 
is  shown  in  another  page  of  this  book,  is 
claimed  to  be  "the  sanest  and  simplest  law  yet 
enacted." 

Some  parties  gather  the  impression  that  zon- 
ing is  an  expensive  luxury  and  a  burdensome 
undertaking  for  the  taxpayer.  On  the  contrary, 
we  are  informed  that  this  is  not  true  if  the 
proper  economies  are  followed  by  its  pro- 
ponents. Like  every  other  public  improvement, 
it  can  be  made  to  cost  much  or  little. 

In  order  to  find  out  what  Illinois  cities,  now 
operating  under  this  law,  think  of  zoning  and 
the  cost  of  adopting  and  maintaining  same,  the 
following  communication  from  Evanston  and 
Oak  Park,  Illinois,  are  herewith  submitted. 

From  H.  E.  Chandler  &  Co.,  merchants,  Evans- 
ton: 

"Answering  your  letter  of  yesterday  regard- 
ing the  zoning  system  in  Evanston.  Evanston 
worked  hard  to  get  such  a  law  passed  and  was 
the  first  city  to  take  advantage  of  it  in  this  state. 
It  has  been  of  immense  value  in  establishing  the 
character  of  the  districts,  has  increased  the 
value  of  all  property  and  created  tremendous 
development. 

"The  only  regret  is  that  we  were  not  able  to 
have  such  a  law  ten  or  more  years  ago. 

"In  my  opinion  every  city  should  be  zoned  at 
the  earliest  moment — the  longer  the  matter  is 
delayed  the  more  difficult  it  becomes.  If  you 
select  men  of  good  character  and  business  fore- 


City  Zoning  277 

sight,  any  city  can  be  zoned  and  a  character 
established  and  a  lasting  benefit  to  all  the 
people." 

From  Dudley  C.  Meyers,  Secretary,  Oak  Park, 
Illinois : 

"In  reply  to  your  letter  regarding  the  zoning 
in  Oak  Park,  beg  to  report  as  follows: 

"In  a  general  way  I  would  say  that  the  ma- 
jority of  the  citizens  in  Oak  Park  are  very  well 
pleased  with  the  results  of  the  zoning  ordinance 
that  was  passed. 

"In  reply  to  your  questions : 

"1.  Oak  Park  was  practically  all  built  up  and 
the  character  of  the  town  pretty  well  estab- 
lished. In  my  opinion  I  do  not  think  that  arbi- 
trarily fixing  the  zoning  would  interfere  with 
the  growth  of  a  community  not  built  up,  pro- 
viding, of  course,  a  careful  study  is  made  in  the 
first  place  to  figure  out  as  far  as  possible  the 
probable  lines  of  development. 

"2.  I  do  not  think  that  zoning  would  restrict 
growth.  I  think  it  encourages  building  in  the 
particular  districts. 

"3.  There  might  be  some  cases  where  prop- 
erty would  be  damaged,  and  cause  liability  on 
the  part  of  the  village,  but  I  do  not  think  this 
is  a  serious  objection. 

"4.  In  my  opinion  I  think  it  is  best  to  estab- 
lish zoning  as  early  as  possible  in  the  develop- 
ment of  a  city. 

"Oak  Park  did  not  engage  expert  assistance 
in  drawing  up  the  zoning  ordinance,  which  cost 
about  $1,500  to  prepare  and  publish. 

"As  regards  the  annual  cost  of  zoning,  the 


278       The  Destiny  of  the  American  City 

secretary  of  this  board  is  paid  $600  a  year  and 
the  necessary  legal  notices  cost  about  $300  a 
year." 

From  F.  S.  Anderson,  Building  Commissioner, 
Evanston,  Illinois: 

"A  large  part  of  the  preliminary  work,  result- 
ing in  the  passage  of  the  Evanston  Zoning  Ordi- 
nance, was  done  by  members  of  the  City  Coun- 
cil and  citizens  at  no  expense.  A  consultant  was 
employed  whose  compensation  was  $3,500.  Un- 
der the  requirements  of  the  statutes  at  that  time, 
a  large  amount  of  printing  was  necessary  in  the 
form  of  notices,  advertisements,  etc.  The  total 
cost  up  to  and  including  the  adoption  of  the 
Zoning  Ordinance  was  about  $6,000.  No  annual 
maintenance  cost  is  provided  for  other  than 
publishing  notices  of  hearings,  stationery,  etc., 
for  which  purpose  $500  has  been  appropriated." 

The  zoning  law  in  the  final  analysis  may  be 
summed  up  as  designed,  to  make  permanent 
business  street  centers,  to  limit  height  and  bulk 
of  buildings,  to  create  and  protect  residence 
streets  from  invasion  of  business,  to  provide 
safety,  security  and  permanency  to  real  estate 
values,  to  make  residence  sections  sanitary,  safe 
and  noise-free,  freedom  from  unjust  burdens, 
to  provide  more  air  and  sunshine  in  building 
constructions,  and  to  protect  industrial  districts 
from  interference. 

American  cities  have  too  frequently  been 
allowed  to  grow  wild  when  intelligent  legisla- 


City  Zoning  279 

tion  and  direction  could  have  made  their  growth 
a  permanent  beauty. 

From  the  rapid  stride  already  made  and  great 
interest  now  taken  in  the  movement  throughout 
the  country,  it  is  a  strong  indication  that  zoning 
will  take  its  proper  place  and  do  its  part  as  an 
important  factor  in  working  out  the  destiny  of 
the  American  city. 


XXI 

THE  CITY  AND  THE  ALIEN 


The  United  States  is  commonly  re- 
garded as  the  land  par  excellence  of  alien 
accumulation,  and  in  truth  the  resort  to 
these  shores  during  the  last  four  decades 
has  presented  a  phenomenon  unparalleled 
in  human  history.  Yet  the  census  of  1910 
showed  that  of  the  whole  national  popu- 
lation, less  than  15  per  cent  was  foreign- 
born.  To  the  country  as  a  whole,  there- 
fore, the  alien  influx  has  not  presented  any 
insoluble  problem  of  social  assimilation; 
but  if  one  regards  only  the  cities,  and  par- 
ticularly the  larger  cities,  one  finds  the 
situation  to  be  very  different. 

— Munro. 


THE  CITY  AND  THE  ALIEN 

While  immigration  is  essentially  a  national 
problem  for  solution,  nevertheless  the  munici- 
pality becomes  one  of  the  direct  beneficiaries 
of  any  immigration  law  that  may  be  enacted. 
It  becomes,  therefore,  a  proper  subject  of  any 
discussion  that  has  for  its  purpose  the  working 
out  of  the  destiny  of  the  American  city. 

This  is  much  better  understood  when  we 
realize  "that  one  of  the  greatest  enemies  to  the 
sincere  and  efficacious  process  of  Americaniza- 
tion is  urbanism." 

We  have  before  us  at  the  present  time  numer- 
ous plans  and  suggestions  how  these  problems 
should  be  solved.  Some  are  extreme  and  others 
radical. 

Among  the  many  suggestions  offered  are  the 
following:  That  immigration  should  be  sus- 
pended for  one  year.  A  minimum  number  be 
admitted  annually.  A  request  for  a  full  year 
exclusion  act.  Immigration  restricted  on  a  per- 
centage system,  based  on  the  number  of  aliens 
already  admitted  and  those  to  be  admitted. 

A  few  arguments,  gathered  here  and  there, 
following  these  suggestions  are  shown  below, 
giving  the  viewpoints  of  a  few  who  have  given 

283 


284       The  Destiny  of  the  American  City 

immigration  problems  some  study  and  investi- 
gation. 

"When  the  United  States  has  taken  a  resolute 
step  in  the  solution  of  the  great  problem  directly 
connected  with  the  "digestion"  of  the  foreign 
masses,  who  at  present  congregate  in  the  large 
cities  instead  of  scattering  themselves  through- 
out the  country,  the  problem  of  Americanization 
will  be  more  than  half  solved.  The  overcrowd- 
ing of  the  large  cities  by  foreigners  is  not  only 
evil  to  the  foreigners,  but  it  is  a  greater  evil 
to  the  nation. 

"The  farmer,  on  the  other  hand,  is  a  worker 
and  creator  at  the  same  time  and  he  makes  the 
objects  which  he  handles;  the  fertility  of  the 
soil  is  as  much  created  by  him  as  by  the  gen- 
erosity of  nature.  He  builds  houses,  plants  trees 
and  establishes  firesides  and  families.  He 
naturalizes  himself  before  asking  for  his  citizen- 
ship papers,  and  he  becomes  an  active  element 
in  the  formation  of  the  general  wealth  of  the 
nation." 

From  alien  sources,  those  of  Nordic  strain, 
we  hear  the  following: 

"The  Finnish,  Swedish,  Norwegian,  Danish, 
Dutch,  German,  that  is,  the  northern  European 
immigrants  on  the  whole,  who  usually  become 
farmers  and  miners,  should  be  allowed  admis- 
sion to  this  country,  excluding  only  those  among 
them  who  have  Bolshevik  ideals.    Each  country 


The  City  and  the  Alien  285 

should  co-operate  with  the  United  States  in  pro- 
hibiting passage  to  those  citizens  who  are 
known  to  be  Bolsheviki." 

We  hear  from  another  who  says :  "We  have 
always  favored  restricting  immigration  to  the 
exclusion  of  undesirables  of  all  kinds,  but  admit 
that  it  is  no  easy  matter  to  find  the  right  means 
by  which  this  can  justly  be  done.  At  the  present 
time  the  economic  situation  in  this  country 
seems  to  demand  some  temporary  check  at  least, 
but  the  laws  governing  immigration  should  not 
at  any  time  favor  any  class,  capital  or  labor,  but 
only  take  cognizance  of  what  will  ultimately 
benefit  the  nation  as  a  whole. 

"Immigration  to  the  United  States  is  an  eco- 
nomic question  governed  by  the  law  of  supply 
and  demand  in  the  labor  market.  Honest 
workers,  mechanics  and  professional  men,  who 
are  willing  to  support  our  constitution  and  help 
build  up  our  country,  should  be  admitted  after 
undergoing  some  literacy  test  and  giving  proof 
of  good  moral  character,  health,  and  so  on. 
America  needs  good  agricultural  workers  as 
well  as  trained  mechanics  for  the  developing 
of  the  western  states,  and  particularly  for  the 
building  and  other  basic  industries." 

Literacy  Test 

Secretary  of  Labor  Davis  offers  a  plan  for  the 
registration    and   education   under   the   super- 


286      The  Destiny  of  the  American  City 

vision  of  the  federal  government  of  all  alien 
residents  of  the  United  States.  He  believes  in 
educating  the  immigrant  rather  than  impose  the 
literacy  test  as  a  qualification  for  entry. 

"Had  a  literacy  test,  now  given,  be  applied 
when  my  father  came  to  the  United  States," 
writes  the  secretary,  "who  was  born  in  Wales, 
he  probably  would  not  have  been  admitted." 

Many  seeking  admission,  but  unable  to  gain 
it  because  of  the  test,  would  be  far  better  citi- 
zens than  many  who  meet  our  present  require- 
ments. What  we  need  to  do  is  properly  educate 
for  citizenship  the  millions  of  aliens  now  with 
us  and  the  hundreds  of  thousands  being  ad- 
mitted yearly. 

To  accomplish  this  the  scope  of  the  work  of 
the  present  bureau  of  naturalization  should  be 
enlarged  by  providing  a  uniform  registration  of 
all  aliens  and  a  complete  system  of  directing 
their  education  along  lines  which  will  make  for 
Americanization. 

Secretary  Davis  would  have  the  proposed 
bureau  of  citizenship  charged  with  the  super- 
vision of  the  immigrants  from  the  moment  of 
his  arrival  until  he  becomes  a  naturalized  citi- 
zen, the  expense  to  be  met  from  the  small  fee 
imposed  when  the  immigrant  first  registers,  as 
he  would  be  compelled  to  do  within  thirty  days 
of  his  arrival  and  annually  thereafter. 

Five  dollars  has  been  suggested  as  the  regis- 


The  City  and  the  Alien  287 

tration  fee,  but  the  Secretary  believes  it  should 
be  at  least  $10.  This  fund,  which  immigration 
officials  contend  would  amount  to  $400,000  a 
year,  to  be  used  in  part  for  making  surveys,  at 
regular  intervals,  of  public  institutions  to  ascer- 
tain the  number  and  status  of  aliens  there  and 
information  concerning  them,  and  means  to 
help  them. 

Every  business  and  professional  person  re- 
maining in  the  country  for  seven  years  or 
longer,  subject  to  registration  and  the  payment 
of  the  annual  fee. 

The  tendency  on  the  part  of  the  government 
seems  to  be  a  plan  to  divert  immigration  to  the 
vast  areas  of  potential  agricultural  land  as  a 
means  of  preventing  the  United  States  from  be- 
coming a  nation  of  city  dwellers. 

Americanization 

A  great  work  is  being  accomplished  in  the 
field  of  Americanization  of  the  alien,  although 
the  scientists  are  inclined  to  make  light  and  be- 
rate the  work  by  proclaiming  that  the  theory  of 
the  melting  pot  is  nothing  but  a  myth  and  does 
not  stand  up  under  the  crucial  test  of  scientific 
investigation. 

With  the  laws  of  breeding  carefully  worked 
out,  called  the  Mendelian  laws  of  heredity, 
which  all  biologists  now  universally  recognize, 
rests  upon  the  very  firmest  foundation,  they  use 


288       The  Destiny  of  the  American  City 

to  show  the  impossibility  of  assimilating  certain 
strains  that  go  to  make  up  the  old  type  of  Amer- 
ican citizenship. 

The  accepted  principles  enunciated  under  the 
Mendelian  laws  of  heredity  are  "that  the  germ 
plasm  upon  which  heredity  depends  is  one  of 
the  most  inalterable  of  all  forces  of  matter,  that 
neither  precept  or  principle  can  change,  that 
climate,  occupation,  latitude,  longitude  and  en- 
vironment leaves  it  for  centuries  unimpaired." 

With  all  due  respect  to  the  natural  laws  of 
heredity,  it  is  found  that  signal  success  attends 
the  efforts  of  those  who  are  giving  the  best 
thought  and  most  conscientious  endeavor  in  in- 
culcating in  the  mind  of  the  foreigner  the  prin- 
ciples of  self-government,  inspiring  them  with 
American  ideals,  familiarizing  them  with  the 
outlines  of  our  history,  and  teaching  them  to 
honor  and  respect  the  flag. 

Even  if  it  does  not  accomplish  impossibilities 
it  should  be  credited  with  the  good  it  is  accom- 
plishing without  berating  Americanization  for 
that  which  it  seems  no  human  agency  is  able  to 
accomplish. 

In  the  early  days  of  immigration,  when  the 
old  Nordic  strain  from  the  Northlands  of 
Europe  invaded  our  shores,  we  found  we  could 
assimilate  these  people  and  assume,  therefore, 
that  we  could  successfully  apply  the  rule  to 
persons  of  any  race  or  blood. 


The  City  and  the  Alien  289 

History  teaches  that  it  is  impossible  for  us  to 
assimilate  the  alien  outside  the  Nordic  strain. 
While  it  may  be  true,  without  assimilation  it 
is  impossible  to  convert  the  alien  into  the  old 
American  type  of  citizenship,  still  a  great  work 
is  accomplished,  although  perfection  may  not  be 
reached  in  each  and  every  case. 

Whether  it  be  called  Americanization,  or  by 
any  other  name,  the  results  are  beneficial,  both 
to  the  nation  and  alien,  and  should  prevail. 
Therefore,  instead  of  discouragement  the  pro- 
ponents of  Americanization  should  be  given 
every  encouragement  by  the  federal  govern- 
ment, by  establishing  some  system  of  registra- 
tion and  education  of  the  alien  similar  to  these 
which  have  already  been  proposed,  by  which  the 
alien  may  be  carefully  followed  up  from  the 
time  he  enters  the  country  and  registers  until 
finally  qualified  for  his  proper  naturalization. 

By  taking  these  initial  precautions  we  can 
safely  rely  upon  American  institutions,  public 
school  system  and  contact  with  young  American 
life  in  education  and  guiding  his  American-born 
children  so  that  they  may  become  respected 
units  in  local  and  national  civic  life. 

In  defense  of  Americanization,  The  Chicago 
Tribune,  in  commenting  on  Grafton  Wilcox's 
article  on  the  work  of  the  American  Legion  for 
Americanization,  has  published  one  of  the  best 
editorials  written  on  this  subject,  entitled  "In 

19 


290       The  Destiny  of  the  American  City 

Defense  of  the  American  Heritage,"  which  it  is 
our  pleasure  to  show,  as  follows: 

"We  believe  this  work  is  the  most  important 
service  the  Legion  can  perform  short  of  armed 
defense  of  the  country,  and  in  one  sense,  it  is 
even  more  useful,  since  it  may  be  classified  as 
preventive  medicine. 

"We  hope  the  Legion  will  take  its  Ameri- 
canization campaign  very  seriously  and  push  it 
energetically.  But  it  should  not  be  left  unaided. 
Patriotic  societies  and  civic  organizations 
throughout  the  country  should  carry  on  educa- 
tional work  of  like  character.  We  also  urge 
co-operation  among  all  patriotic  agencies  and 
the  formulation  of  a  consistent  program  ex- 
pressed in  well  considered  methods.  We  sug- 
gest, therefore,  that  the  Legion  call  a  conference 
on  Americanization,  inviting  all  the  associations 
interested  in  the  problem  to  send  delegates.  In 
such  a  conference,  which  ought  to  include 
leading  educators  and  heads  of  public  school 
systems,  the  situation  could  be  thoroughly 
examined  and  the  most  effective  measures 
determined  upon. 

"We  think  such  a  conference  is  needed  for 
two  reasons.  The  chief  of  these  is  that  it  would 
help  to  arouse  a  more  general  interest  in  the 
problem  and  to  advertise  the  anti-patriotic  in- 
fluences operating  in  this  country.  We  agree 
with  Commander  McCauley  of  the  Illinois  De- 


The  City  and  the  Alien  291 

partment  of  the  Legion,  who  has  been  making 
a  survey  of  conditions  and  asserts  that  our 
American  people  feel  too  secure.  'Some  cold 
facts,  bluntly  administered,'  he  says,  'might 
wake  them  up  to  conditions  all  about  them.' 

"Commander  McCauley  refers  especially  to 
the  situation  among  non-English  speaking  resi- 
dents who  are  reached  by  the  propaganda  of 
foreign  radicalism  which  is  not  being  counter- 
acted by  education  in  American  institutions  and 
ideas.  This  is  a  weak  spot,  undoubtedly,  in  our 
system.  Many  an  immigrant  comes  to  us  from 
a  country  in  which  freedom,  its  principles  and 
opportunities,  are  unknown.  What  political 
and  social  ideas  he  has  are  based  on  conditions 
in  the  country  he  has  left.  He  has  no  knowledge 
of  American  ideas  and  he  cannot  acquire  it  so 
long  as  he  cannot  read  our  language  and  lives 
among  his  own  people  in  the  same  condition, 
though  transplanted,  or  rather  removed  to  our 
shores.  If  he  suffers  want  here,  he  must  inter- 
pret its  causes  and  seek  remedies  in  terms  of 
the  knowledge  and  theories  he  brought  with 
him.  American  alternatives  he  has  no  chance 
to  consider. 

"There  are  hundreds  of  thousands  in  this  sit- 
uation. Commander  McCauley  estimates  there 
are  in  Illinois  alone  175,000  above  the  age  of  ten 
who  do  not  speak  or  read  English.  But  from 
the  viewpoint  of  our  discussion  we  must  add  to 


292        The  Destiny  of  the  American  City 

them  a  much  larger  class  who,  while  they  speak 
and  read  English,  are  not  really  instructed  in 
American  principles  and  who  think  in  terms  of 
Old  World  revolt  because  they  have  not  seized 
our  principles  or  committed  themselves  to  our 
American  conceptions  of  liberty  and  progress. 
They  do  not  cherish  the  hope  Americans  have 
nor  seek  progress  on  American  lines. 

"This  large  body  of  our  population,  number- 
ing perhaps  millions,  is  a  force  to  be  reckoned 
with.  It  is  a  disintegrant  of  Americanism  and 
strong  enough  to  pervert  our  native  institutions 
and  divert  the  course  of  our  political  and  social 
evolution. 

"But  this  element  does  not  constitute  the  only 
phase  of  the  problem.  The  indifferent  Amer- 
icans constitute  another.  Americans  of  this 
generation  have  not  had  to  fight  for  their  legacy 
of  American  freedom.  Too  many  of  them  are 
like  a  youth  who  inherits  the  wealth  acquired 
by  his  father.  They  take  their  heritage  for 
granted  and  only  dimly  realize  its  nature  and 
its  value.  In  such  cases  they  are  not  jealous 
guardians  of  American  principles  and  institu- 
tions and  do  not  interest  themselves  in  their 
defense  from  attack  or  gradual  encroachment. 
They  are  open  to  any  sophistry  which  assails 
these  hard  earned  treasures  and  are  too  ready 
to  accept  the  superficial  criticism  which  discon- 
tent is  always  bringing  forth. 


The  City  and  the  Alien  293 

"Our  popular  education  is  not  very  effective 
for  inculcating  American  conceptions.  Flag 
waving  and  anthem  singing  are  good,  but  they 
do  not  supply  a  lack  of  a  reasoned  Americanism 
supported  by  instruction  in  the  human  expe- 
rience from  which  our  institutions  have  grown 
and  which  is  their  final  justification. 

"We  think  our  schools,  our  press  and  our 
organized  citizenship,  the  thousands  of  clubs 
and  associations  which  thrive  in  this  country, 
should  undertake  definitely  and  efficiently  to 
educate  our  public  in  American  institutions  and 
doctrine.  The  present  efforts  are  not  properly 
co-ordinated  or  effectively  directed.  We  rely 
too  much  upon  emotion  and  expect  too  much 
that  our  American  principles  will  be  seized  and 
approved  upon  statement.  What  is  needed  is 
a  clear  and  reasoned  and  persistent  effort  and 
we  ought  not  to  lose  time  in  getting  it  under 
way." 

Immigration  and  Labor 

Two  of  the  arguments  in  favor  of  a  selective 
immigration  law  and  against  a  too  strong  exclu- 
sion act  are,  first,  the  possible  shortage  in  com- 
mon labor  in  order  to  supply  the  real  needs  of 
the  nation,  and  second,  in  increasing  the  home 
market  by  increasing  the  population  in  the 
development  of  the  unlimited  natural  resources 
of  the  nation. 


294       The  Destiny  of  the  American  City 

In  the  discussion  of  these  two  propositions  it 
brings  us  up  to  the  industrial  angle  of  the  im- 
migration problem  and  its  relation  to  labor. 

On  this  question,  as  in  many  others,  we  find 
the  radical  in  both  camps.  On  one  side  are 
those  for  unrestricted  immigration,  who  con- 
tend that  the  suspension  of  immigration  for  a 
term  of  years  will  result  in  a  shortage  of  Amer- 
ican labor,  exploiting  industry  and  a  higher 
cost  of  living. 

On  the  other  side  are  those  for  a  closed  shop 
for  labor  to  all  the  rest  of  the  world,  who  con- 
tend that  it  is  necessary  in  order  to  maintain 
the  American  wage  rate  and  a  higher  standard 
of  living  for  the  American  wage  earner. 

Again,  those  who  say  that  selective  immigra- 
tion will  lower  the  wage  rate  are  asked  by  those 
on  the  other  side  if  this  be  true;  why  with  im- 
migration at  its  peak,  wages  are  higher  than 
ever  before,  showing  the  relation  between  un- 
restricted immigration  and  low  wage  rate  does 
not  appear  to  be  very  close,  even  less  so  they 
contend  when  you  stop  to  consider  that  years 
ago  when  immigration  was  at  a  low  ebb,  the 
wage  rate  was  correspondingly  low  and  that  the 
gradually  increased  wage  rate  since  that  time 
has  been  in  the  face  of  a  gradually  increased 
immigration. 

From  all  extreme  measures  the  nation  should 
be  guarded.     To  attain  the  economic  equilib- 


The  City  and  the  Alien  295 

rium,  it  is  reaching  out  for  a  wise  and  sane 
solution  of  a  very  complex  problem  in  the 
hope  of  doing  justice  to  labor,  industry  and  all 
alike. 

Unlike  Europe,  American  labor  knows  no 
caste  that  binds  it  down  and  arbitrarily  sur- 
rounds it  with  fixed  social  laws  that  handicap 
individual  effort  from  reaching  a  higher  plane 
of  endeavor. 

In  America  the  evolution  of  the  laborer  from 
employe  to  employer,  for  the  one  who  thinks 
and  fights,  is  sure  and  fast.  The  mechanic  of 
this  generation  becomes  the  master-mechanic  of 
the  next.  The  common  laborer  works  and  saves, 
the  housewife  washes  and  scrubs,  not  that  their 
sons  may  become  common  laborers  and  their 
daughters  washerwomen  and  scrubwomen,  but 
on  the  contrary,  educated  men  and  women  fitted 
and  perfected  for  higher  positions  of  usefulness. 

So  under  the  American  system  of  evolution 
we  see  that  a  few  generations  remove  from  the 
field  of  common  labor  those  who  make  them- 
selves efficient  for  more  advanced  vocations. 

A  proper  consideration,  therefore,  should  be 
given  as  to  what  extent  a  suspension  of  immi- 
gration, with  American  labor  a  closed  shop  to 
the  rest  of  the  world,  would  leave  the  army  of 
common  labor  without  sufficient  reserves  to  fill 
up  the  gaps. 

On  the  question  of  increasing  the  home  mar- 


296       The  Destiny  of  the  American  City 

ket  we  quote  from  the  pen  of  Arthur  Brisbane, 
the  following: 

"What  does  this  country  need  more  than  any- 
thing else,  leaving  out  moral  improvement?  It 
needs  for  its  own  protection  and  prosperity 
greatly  increased  population. 

"We  have  room  in  Texas  for  more  people  than 
there  are  in  the  United  States  now. 

"If  this  country  had  five  hundred  million  men 
and  women  of  the  white  races,  cultivating  all 
of  the  good  land,  reclaiming  the  deserts  and 
swamp,  buying  of  each  other,  we  should  not 
need  to  worry  about  the  outside  world,  or  out- 
side markets. 

"We  are  loosing  our  European  markets  be- 
cause they  can't  buy,  or  won't  buy.  We  do  not 
sell  to  Europe,  but  to  human  beings  in  Europe. 
If  we  had  those  human  beings  here  in  the  United 
States  we  would  sell  to  them.  And  our  only 
salvation  at  the  moment  is  that  we  fortunately 
have  a  hundred  million  here  to  whom  we  can 
sell,  with  whom  we  do  trade. 

"There  could  be  no  greater  misfortune  than 
laws  that  shut  out  immigration  Of  the  right  kind. 
We  are  shutting  our  doors  at  a  time  when  mil- 
lions of  the  best  types  of  immigrants  would 
come,  Italians,  Germans,  Irish,  Scotch,  Russians, 
Bulgarians,  and  endless  others. 

"With  five  hundred  millions  of  population 
here,  educated,  trained  in  process  of  time,  this 


The  City  and  the  Alien  297 

country  would  need  to  fear  no  attack  from  the 
outside,  would  not  need  to  worry  about  outside 
markets.  We  would  produce  for  each  other  and 
sell  to  each  other.  If  one  hundred  million  mean 
prosperity,  would  not  five  hundred  million  mean 
greater  prosperity? 

"Thirty-six  million  in  America,  according  to 
the  Department  of  Commerce,  have  'foreign 
blood.'  They  were  born  in  Europe  or  have  their 
father  or  mother  born  in  Europe. 

"All  white  Americans,  of  course,  have  'foreign 
blood.'  Most  of  it  goes  back  not  very  far,  and 
much  that  goes  back  furtherest  is  the  least  de- 
sirable. 

"The  United  States  is  built  on  foreign  blood, 
foreign  intelligence,  foreign  AMBITION. 

'This  country  grew  rapidly  because  those  that 
came  were  ambitious;  they  had  the  energy  to 
cross  the  ocean. 

"The  greatest  mistake  this  nation  ever  made 
is  keeping  out  what  it  needs  now,  more  than 
ever,  ambitious,  energetic  immigration  from 
Europe." 

From  a  recent  report  we  read  that  "a  young 
Russian  girl  has  won  the  Colonial  Dames'  medal 
for  a  prize  essay  on  Americanism.  That  is  not 
surprising.  Americans  are  likely  to  take  Amer- 
icanism as  a  matter  of  course,  sometimes  un- 
fortunately to  the  extent  of  forgetting  what  it 
means  to  them.    We  would  not  exaggerate  the 


298       The  Destiny  of  the  American  City 

heedlessness  of  youth  and  our  remark  applies 
more  pointedly  to  grown-ups  than  to  children; 
but  it  is  a  fact  that  Americans,  while  they  may 
be  very  proud  of  their  country  and  of  their 
Americanism,  often  show  a  regrettable  vague- 
ness as  to  the  principles  which  have  brought  an 
unparalleled  welfare  to  this  land  of  ours. 

"We  observe  this  most  conspicuously  in  our 
readiness  to  propose  laws  which  are  not  Amer- 
ican in  principle  and  which  as  they  are  enacted 
in  passing  impulse  carry  us  away  from  the 
American  system.  The  drift  towards  govern- 
ment interference  in  private  activities  and 
private  conduct  is  not  Americanism,  but  Eu- 
ropeism.  Whimpering  and  snarling  over  in- 
equalities of  material  fortune  is  not  Amer- 
icanism. Reliance  upon  individual  energy  and 
initiative  and  a  shrewd  distrust  of  aggrandize- 
ment of  government  are  the  basis  of  true  Amer- 
ican character,  and  it  is  American  character 
which  makes  American  institutions  and  guaran- 
tees their  healthy  evolution." 

A  foreign-born  American  is  often  more  likely 
to  appreciate  the  virtue  of  true  Americanism, 
if  only  by  contrast  with  conditions  left  behind. 
Where  this  occurs,  and  we  believe  it  occurs 
more  often  than  not,  there  is  a  sound  American, 
whose  intelligent  devotion  to  the  country  can 
be  counted  upon  in  war  and  in  peace. 

"True  Americanism  is  not  a  question  of  birth. 


The  City  and  the  Alien  299 

It  is  understanding  and  whole  heartedly  shar- 
ing the  spirit  of  essential  Americanism." 

In  the  final  analysis  in  view  of  all  the  facts, 
the  necessity  of  working  out  a  plan  of  selective 
immigration  is  apparent. 

This  thought  strikes  us  more  forcibly  when 
we  review  the  past  and  see  the  prodigious 
strides  this  country  has  made  under  the  old 
regime,  even  with  all  its  faults. 

While  it  is  true,  as  everyone  now  recognizes, 
that  the  changed  conditions  brought  on  by  the 
war  makes  this  question,  at  the  present  time, 
one  of  the  most  important  of  the  hour,  still  this 
problem,  like  every  other,  must  not  be  arbi- 
trarily acted  upon  in  an  atmosphere  of  inflamed 
public  opinion,  without  giving  whatever  course 
is  contemplated  due  consideration  as  to  possible 
secondary  effects. 

A  selective  immigration  law  should  first  make 
provision  to  give  every  protection  to  labor  under 
the  abnormal  conditions  that  now  exist,  and 
after  this  is  done  to  preserve  the  economic 
balance  between  labor  and  production  in  auto- 
matically filling  from  without,  any  gap  in  the 
ranks  of  common  labor  that  cannot  be  filled 
from  within;  but  in  so  doing  to  promote  every 
safeguard  in  the  selection,  in  such  a  manner  and 
in  such  quantities  that  in  no  case  will  it  degrade 
or  lower  the  American  standard. 


300       The  Destiny  of  the  American  City 

Immigration  and  Living  Costs 

From  time  to  time,  we  have  taken  into  ac- 
count the  different  factors  that  go  to  make  up 
the  high  cost  of  living. 

A  great  many  charge  the  high  cost  of  living 
up  to  some  vague  abstruse  cause,  more  or  less 
related,  but  general  and  remote,  not  realizing 
that  it  is  the  result  of  the  every  day  demands 
we  are  making  through  the  laws  we  are  pass- 
ing and  that  the  luxuries  received  as  a  result 
of  these  laws  must  be  paid  by  all  of  us  by 
charging  them  up  to  everything  we  buy,  sell, 
use  or  own. 

Up  to  the  present  time  there  were  only  five 
primary  causes  for  the  high  cost  of  living,  item- 
ized and  analyzed  briefly  as  follows: 

First:  Cost  of  labor  and  the  reduction  in  the 
hours  that  go  to  make  up  a  labor  day. 

Second:  Increased  cost  of  transportation, 
half  the  operating  expense  of  which  is  the  labor 
charge. 

Third:  Tariff  laws,  to  keep  up  American 
prices. 

Fourth :  Mounting  government,  state,  county, 
township  and  municipal  taxes. 

Fifth :  Special  tax  mania,  with  its  hunger  for 
everything  assessable,  now  seeking  first  place 
in  the  race  as  the  principal  factor  in  the  high 
cost  of  living.  To  all  of  this  we  must  now  add 
restricted  immigration. 


The  City  and  the  Alien  301 

Considerable  space  in  this  volume  has  been 
devoted  to  immigration  problems.  Many  may 
wonder  what  this  subject  has  to  do  with  the 
destiny  of  the  American  city.  It  makes  no  dif- 
ference what  restrictions  are  placed  upon  im- 
migration under  any  of  the  various  plans  now 
proposed,  if  ever  put  into  effect  will  undoubt- 
edly in  the  end  have  a  most  direct  bearing  upon 
the  building  industry. 

So  far  as  the  cost  of  building  construction  is 
concerned,  as  an  aid  in  maintaining  and  pos- 
sibly increasing  the  present  high  cost  of  build- 
ing labor,  restricting  immigration  will  be  a 
decided  factor.  In  the  start  it  will  mean  a  cur- 
tailment in  the  supply  of  common  labor  and 
upon  revival  and  expansion  of  industrial  ac- 
tivities, factories  will  experience  a  shortage  in 
the  supply  of  common  labor  which  will  make 
it  necessary  sooner  or  later  to  advance  the  wage. 

This  will  naturally  draw  from  the  outside 
some  of  those  engaged  in  building  construction, 
at  least  many  of  those  who  would  naturally 
drift  into  various  building  crafts  now  will  be 
induced  to  enter  other  activities  on  account  of 
this  inevitable  shortage. 

The  consequent  result  of  this  scarcity  will  be 
the  maintaining  or  the  advancement  of  the  cost 
of  building  labor  as  there  is  nothing  to  feed 
either  factory  or  building  construction  from  be- 
low with  anything  near  what  it  will  take   to 


302      The  Destiny  of  the  American  City 

to  care  for  anticipated  business  revival  and  ex- 
pansion, to  say  nothing  about  the  contemplated 
development  of  the  boundless  national  resources 
of  the  land. 

It  is  not  very  difficult  to  see,  therefore,  with 
the  unlimited  natural  resources  of  the  country 
still  undeveloped  combined  with  the  wonderful 
possibilities  of  industrial  growth  and  expansion 
that  it  will  continually  fall  to  the  lot  of  those 
less  fortunate — the  unskilled  group  who  are 
willing  to  do  the  work  which  skilled  labor  is 
unable  to  do,  except  at  a  price  which  their 
ability  to  do  other  work  naturally  commands. 

If  this  being  the  case,  we  should  now  com- 
mence to  figure  and  be  prepared  for  the  short- 
age of  common  labor  which  will  result  from 
two  things,  first  in  restricting  immigration,  and 
second  the  continual  withdrawal  of  the  Amer- 
ican born  from  the  field  of  common  labor, 
owing  to  the  heritage  of  the  American  system 
of  advancement  for  efficiency  to  higher  planes 
of  physical  and  mental  endeavor. 

It  can  be  seen  how  extremely  important  im- 
migration laws  are  in  possible  secondary  effects. 
While  selective  immigration,  up  to  a  certain 
point,  is  imperative,  we  must  not  lose  track,  in 
our  aim  to  reserve  for  America  a  superior 
standard,  just  how  high  this  standard  can  be 
placed  before  it  becomes  a  closed  shop  to 
natural  growth  and  expansion. 


The  City  and  the  Alien  303 

A  law  passed  during  a  period  of  abnormal 
depression  is  oftentimes  a  misfit  when  applied 
to  a  period  of  expansion  and  development. 

Laws  in  their  nature  are  not  elastic  enough  in 
all  cases  to  be  adjusted  readily  to  the  rapidly 
changing  conditions  of  the  present  era  without 
causing  at  least  some  economic  loss. 

Some  economic  loss  in  one  direction  may  be 
justifiable  in  order  to  obtain  an  economic  gain 
in  another. 

Our  duty,  however,  must  be  to  carefully  study 
and  then  openly  discuss,  not  only  the  possibili- 
ties of  all  the  good  in  every  public  measure 
offered,  but  also  the  possibilities  of  all  the  bad, 
in  order  to  maintain  for  the  nations,  so  far  as 
possible,  its  proper  economic  balance. 

Human  Wealth 

Human  wealth  furnishes  a  nation  with  energy 
in  two  forms,  brain  energy  and  muscular 
energy,  the  energy  of  mind  and  body. 

It  has  been  truly  said  that  "there  are  better 
ideas  in  the  brain  of  man,  greater  wonders, 
marvels  and  miracles  than  ever  were  brought 
out  of  it."  Wonders  have  been  done  by  man, 
still  greater  wonders  remain  to  be  done. 

With  ambition  the  great  driving  force,  great 
good  has  come  out  of  man's  rule  of  the  earth, 
still  greater  good  will  come  to  the  world  when 
man  becomes  more  capable  of  controlling  and 
ruling  himself. 


304      The  Destiny  of  the  American  City 

Selecting  human  wealth  from  without  in  such 
quantities,  and  for  such  purposes  most  essen- 
tial to  the  growth  and  progress  of  the  country, 
makes  it  at  once  a  valuable  national  asset. 

In  the  industrial  world,  in  order  to  enforce 
the  material  wealth  of  the  nation,  everything 
is  done  that  can  be  done  to  perfect  and  improve 
production. 

Scientific  knowledge,  careful  research  by  uni- 
versity, specialist  and  every  known  human 
agency  is  employed  in  placing  the  product  of 
industry  and  farm  up  to  the  very  highest  stand- 
ard and  pinacle  of  perfection. 

There  is  no  more  interesting  sight  in  all  the 
world  than  to  look  on  campus  green  and  watch 
the  students  from  foreign  clime,  with  ancestry 
very  few  generations  removed  from  feudalism 
and  barbarism,  in  daily  contact  with  the  very 
best  there  is  in  American  life,  imbibing  its  prin- 
ciples, spirit  and  all  that  goes  to  make  up  the 
great  American  character. 

Surely  the  creation  of  human  wealth,  both 
within  and  from  without,  into  a  valuable  na- 
tional asset,  becomes  an  interesting  and  most 
inspiring  study  as  we  watch  it  blending  and 
filtering  into  American  citizenship  through  the 
great  educational  institutions  of  the  land. 


XXII 
MUNICIPAL  GOVERNMENT 


20 


Municipal  government,  especially  Amer- 
ican municipal  government,  is  certainly 
the  most  important  and  the  most  difficult 
phase  of  government.  It  is  most  important 
because  municipal  government  is  "the  foun- 
dation upon  which  is  built  the  entire  gov- 
ernmental structure  of  the  nation." 

— Chang. 


MUNICIPAL  GOVERNMENT 

"There  is  no  such  thing  as  a  perfect  form  of  gov- 
ernment—municipal, state  or  national.  So  long  as 
government  must  be  administered  by  men,  the 
success  or  failure  of  a  particular  form  of  govern- 
ment, no  matter  what  its  form  may  be,  will  be 
largely  decided  by  the  kind  of  men  who  are  en- 
trusted in  its  administration." 

For  twenty  years  or  more  a  diligent  search 
has  been  made  to  find  a  more  perfect  form  of 
government  to  fit  the  needs  of  the  American 
city.  As  it  now  stands  we  have  three  forms 
which  we  may  elect  to  use,  the  mayoralty,  or 
what  is  known  as  aldermanic  form,  the  city 
commission  and  city-manager  plan. 

The  desire  to  divorce  politics  from  local  ad- 
ministration of  affairs  has  given  impetus  to  the 
careful  consideration  of  the  merits  of  any  form 
of  government  that  would  concentrate  the 
efforts  of  those  in  power  upon  the  local  welfare 
of  the  city  without  regard  to  whether  the  can- 
didates offered  are  Jeffersonian  democrats  or 
Rooseveltian  progressives. 

If  it  were  possible  for  every  city  to  conscript 
from  its  citizenry  from  one  to  five  best  fitted  to 
manage  and  govern,  free  from  personal  interest 

307 


308       The  Destiny  of  the  American  City 

and  emoluments  of  office,  wholly  in  the  interest 
of  the  city  and  taxpayer,  it  would  not  be  very 
difficult  for  every  community  to  become  satisfied 
that  it  had  the  nearest  possible  approach  to  an 
ideal  and  efficient  municipal  government. 

Unfortunately,  however,  the  conscription  for 
this  purpose  is  not  in  vogue,  and  we  find,  in 
many  cases,  those  best  fitted  to  manage  and  con- 
trol the  destinies  of  the  American  city  are  not 
volunteers  for  an  office,  now  so  fraught  with  the 
arduous  task  of  forcing  through  an  administra- 
tion policy  founded  upon  common  sense  busi- 
ness methods  and  close  adherence  to  the  funda- 
mentals, so  essential  in  the  economic  chaos  that 
confronts  not  only  the  municipality,  but  the 
state  and  federal  government  as  well. 

The  ideal  city  government,  it  seems,  would 
be  one  that  approaches  in  its.  management 
nearest  to  the  rules  governing  business  corpora- 
tions which  are  economically  controlled  and 
managed  in  the  interest  of  the  stockholder. 

It  is  said  that  there  are  over  two  thousand 
American  cities  in  which  the  municipal  execu- 
tive is  called  by  the  title  of  mayor,  and  in  about 
four  hundred  others  he  is  known  as  president 
or  mayor-commissioner,  and  in  less  than  one 
hundred  municipalities  he  is  styled  the  city- 
manager. 

The  mayoralty  or  aldermanic  form  is  the 
oldest  of  the  three  types,  and  until  within  the 


Municipal  Government  309 

last  quarter  of  a  century  was  found  in  prac- 
tically all  American  cities. 

The  history  of  the  commission  form  dates 
back  about  twenty  years,  and  the  managership 
about  ten  years,  giving  some  idea  of  the  rapid 
progress  being  made  by  the  newer  types  of 
organization. 

City  Commission 

Mr.  Wilner,  of  Buffalo,  in  a  November  issue 
of  the  Review  of  Reviews,  writes  the  following 
article  entitled  "Commission  Government  Under 
Test." 

"The  city  of  Buffalo  has  been  under  the  com- 
mission plan  of  government  for  the  last  five 
years.  Being  the  largest  city  in  the  United 
States  to  adopt  this  system,  Buffalo  is  an  in- 
teresting subject  for  study  by  those  who  are 
trying  to  solve  American  municipal  problems. 
A  remarkable  demonstration  that  the  people 
still  approve  the  experiment  after  five  years  of 
trial  has  recently  been  furnished.  During  the 
session  of  the  State  Legislature,  which  ad- 
journed on  April  16th,  a  determined  effort  was 
made  to  repeal  Buffalo's  commission  charter. 
It  was  defeated  by  the  protests  of  the  citizens, 
which  became  strong  enough  fairly  to  scare  leg- 
islators already  committed  to  the  change  from 
going  ahead  with  their  project." 

The  story  is  worth  while  telling.   The  impor- 


310       The  Destiny  of  the  American  City 

tant  features  of  commission  government,  as 
applied  in  Buffalo,  are  that  both  executive  and 
legislative  functions  are  vested  in  a  council  of 
five  men,  who  are  elected  at  large;  the  mayor 
is  a  member  of  the  council  and  heads  a  depart- 
ment, but  has  no  veto  power;  the  councilmen 
are  nominated  and  elected  by  a  non-partisan 
system  which  requires  that  candidates  have 
their  names  placed  on  the  primary  ballot  by 
petition  without  party  designations  and  the  two 
candidates  for  each  office  who  stand  highest  in 
the  primary  go  on  the  election  ballot,  also  with- 
out party  designations. 

Soon  after  the  election  last  fall  a  Buffalo 
member  of  the  State  Legislature  announced  his 
purpose  to  present  a  bill  revising  the  charter. 
The  proposition  received  little  attention  at  first. 
No  meetings  of  citizens  were  held  to  discuss  it, 
nor  was  the  city  government  consulted.  The 
citizens  gained  their  first  knowledge  of  what 
was  intended  when  the  bill  was  introduced  at 
Albany.  It  was  then  found  that  the  measure 
provided  for  the  creation  of  a  larger  council 
elected  by  districts,  equivalent  to  a  board  of 
aldermen,  who  had  held  office  under  the  old 
government  and  had  been  leaders  in  resisting 
the  adoption  of  the  commission  charter,  orig- 
inally declared  that  it  had  been  successful  and 
should  stand.  At  the  hearing  before  the  mayor 
the  hall  was  crowded  with  earnest  citizens,  rep- 


Municipal  Government  311 

resenting  all  manner  of  organizations,  who 
spoke  emphatically  against  the  bill,  while  but 
seven  persons,  including  two  members  of  the 
legislature,  appeared  in  its  favor. 

The  mayor,  after  holding  the  bill  for  the  fif- 
teen days  that  the  law  permitted,  returned  it  to 
Albany  with  a  stirring  veto.  The  session  was 
then  within  three  days  of  the  time  set  for  ad- 
journment. The  nearly  unanimous  vote  by 
which  the  bill  had  been  passed  the  first  time 
presaged  an  immediate  repassage,  but  the  hearts 
of  the  legislators  failed  them.  The  evidence  of 
public  disfavor  was  too  strong  for  the  poli- 
ticians. They  realized  that  they  had  under- 
estimated the  weight  of  public  opinion  which 
supported  commission  government.  The  local 
senator  who  had  introduced  the  bill  announced 
that  he  would  make  no  further  effort  in  its 
behalf.  The  chairman  of  the  Republican  County 
Committee  declared  that  his  organization  would 
do  nothing  for  it.  No  motion  to  repass  the  bill 
over  the  mayor's  veto  was  made  in  either  house, 
and  the  legislature  adjourned,  leaving  the  com- 
mission charter  untouched. 

This  was  probably  the  one  instance  in  which 
public  pressure  turned  the  New  York  legislature 
of  1921  from  an  original  purpose.  Such  an  ex- 
hibit of  popular  approval  of  commission  govern- 
ment after  five  years  of  experience  may  well 
encourage  municipal  reformers  to  strive  for  a 
further  extension  of  the  system. 


312       The  Destiny  of  the  American  City 

In  a  recent  letter  received  from  Mr.  Wilner, 
a  short  time  after  this  article  appeared  in  the 
Review,  we  quote  the  following: 

"The  recent  election  in  November  changed 
the  situation  here  somewhat.  Neither  of  the 
old  party  organization  succeeded  in  getting  its 
candidates  past  the  primaries.  That  left  the 
final  contest  between  the  sitting  mayor,  who  par- 
ticularly represented  commission  government 
and  an  energetic  brewer  who  ran  principally 
on  wet  town  promises;  the  brewer  won.  While 
this  demonstrates  that  city  politics  are  com- 
pletely divorced  from  party  organizations  and 
that  a  man  may  run  for  office  on  his  own  hook 
and  win,  the  result  has  tended  to  strengthen 
somewhat  reaction  towards  the  party  system 
and  may  lead  to  modification  of  the  commis- 
sion charter." 

This  all  goes  to  show  the  process  of  evolution 
through  which  the  newer  type  of  organizations 
are  now  passing.  The  tendency  to  make,  under 
practical  tests,  such  modifications,  from  time 
to  time,  in  the  commission  charter  so  as  to 
gradually  develop  an  efficiency,  adequately 
equipped  to  give  the  best  possible  service  is  very 
gratifying,  indeed,  and  offers  great  encourage- 
ment to  those  looking  forward  to  the  highest 
possible  type  of  municipal  government  to  be  ob- 
tained for  the  American  city. 


Municipal  Government  313 

City-Manager  Plan 

A  number  of  communications  have  been  re- 
ceived from  cities  throughout  the  United  States 
now  operating  under  the  city  management  form 
of  government,  from  which  the  following  have 
been  selected  as  fair  examples  of  the  results  to 
be  attained  under  this  plan. 

The  following  is  a  quotation  from  a  letter 
recently  received  from  E.  E.  Parsons,  of  Spring- 
field, Ohio: 

"I  am  a  thorough  convert  of  the  city-manager 
form  of  government,  not  on  account  of  being  a 
manager  at  the  present  time,  but  because  I  was 
assistant  city  engineer  of  the  city  of  Springfield 
under  the  old  mayor  and  council  plan,  which  I 
believe  entitles  me  to  make  a  comparison. 

"Some  fifteen  years  ago  I  went  out  into  the 
world  and  worked  for  private  corporations. 
Twelve  years  of  that  time  was  spent  with  the 
Pennsylvania  Railroad,  learning  the  practical 
side  of  civil  engineering  and  executive  work. 
On  returning  to  Springfield  as  city-manager,  I 
brought  with  me  the  private  corporation  busi- 
ness methods,  which  I  have  found  applicable  to 
all  occasions. 

"I  have  questioned  both  the  rich  and  the  poor, 
the  manufacturer  and  the  laboring  man,  and  as 
yet  I  have  not  found  one  person  who  condemns 
the  new  government.    I  was  advised  by  one  of 


314       The  Destiny  of  the  American  City 

the  big  labor  leaders  that  we  have  the  best  gov- 
ernment today.  The  reason  why  the  city- 
manager  plan  is  higher  in  quality  of  govern- 
ment is  because  it  is  more  democratic,  more 
sensitive  and  more  obedient  to  public  opinion. 
There  are  two  very  important  and  superior  fea- 
tures about  this  plan:  One  is  the  short  ballot 
principle,  and  the  other  the  unification  of 
powers. 

"In  using  the  short  ballot,  you  are  given  time 
for  adequate  and  thorough  examination  of  all 
the  qualifications  of  the  candidates.  In  other 
democratic  countries,  such  as  England,  they 
elect  an  officer  in  one  day.  In  the  United  States 
they  elect  10,  20,  30,  40,  50  officers  in  one  day 
and  the  consequence  is  that  we  are  unable  to 
obtain  the  qualifications  of  all  participants, 
therefore  we  resort  to  unauthentic  information 
sent  out  by  the  politicians.  The  short  ballot  is 
the  people's  ballot  and  the  long  ballot  is  the 
politician's  ballot.  Most  city-manager  charters 
stipulate  a  short  ballot.  In  the  city-manager 
form  of  government  they  elect  three  councilmen 
or  commissioners  at  one  time,  and  two  at  an- 
other, giving  ample  opportunity  to  obtain  all 
data  necessary  regarding  the  candidates. 

"The  unification  of  powers,  or  the  basic 
merits  of  city-manager  government,  means  the 
reposing  of  all  powers  in  one  single  place,  such 
as  the  council  or  the  commission.    This  gives  to 


Municipal  Government  315 

the  whole  mechanism  one  single,  controlling, 
composite  mind,  which  is  essential  to  success  of 
any  organization.  The  mayor  and  council  plan 
does  not  give  the  unification  of  powers,  but  it 
permits  deadlocks,  and  the  passing  of  the  buck. 
It  is  the  power  to  veto  the  acts  of  the  council  or 
the  commission.  If  the  mayor  was  given  this 
power  it  would  be  a  two-headed  government 
instead  of  a  one-headed  government. 

"The  advantage  in  having  a  city-manager 
is  obvious  to  most  any  business  man.  For  coun- 
cil many  minds  are  needed;  for  execution  one 
single  directing  head  is  required. 

"It  is  essential  to  the  plan  that  the  city-man- 
ager be  appointive;  even  a  freak  feature  of  one 
city-manager  charter,  which  subjected  the  man- 
ager to  direct  recall  by  the  people,  was  damag- 
ing to  the  principle  involved,  since  it  diverted 
from  the  responsibility  of  the  council  or  the 
commission.  He  should  be  a  servant  of  the 
council  or  commission,  or  else  they  cannot  be 
responsible  for  his  acts.  He  in  no  way  should 
be  independent  of  it. 

"Making  possible  that  the  city-manager  may 
be  hired  from  out  of  town  is  not  only  helpful 
in  getting  trained  service,  but  is  highly  impor- 
tant to  the  growing  profession  of  city  manage- 
ment. If  a  city-manager  could  not  look  else- 
where for  a  similar  position,  in  case  he  is 
displaced,  or  outgrows  his  city,  a  powerful  in- 


316       The  Destiny  of  the  American  City 

centive  toward  the  development  of  personal 
efficiency  would  be  lost.  The  fact  that  the  city- 
manager  may  be  hired  from  out  of  town  is  not 
only  helpful  in  getting  trained  service,  but  it 
is  highly  important  to  a  smoothly  running 
mechanism. 

"In  all  plans  involving  elective  executives, 
long  tenures  are  rare.  To  rid  us  of  the  amateur 
and  the  transcendent  executives,  such  as  some 
of  our  mayors  are,  and  to  facilitate  the  substitu- 
tion of  experienced  executives  in  municipal  ad- 
ministrations is  enough  in  itself  to  justify  the 
coming  of  the  city-manager  plan. 

"If  one  is  so  fortunate  as  to  get  the  new  gov- 
ernment, they  will  have  gotten  their  own  govern- 
ment in  such  shape  that  they  can  hold  their  own 
with  other  private  corporations  in  competition 
for  competent  executive  talent  providing  these 
attractive  conditions:  Tenure  for  as  long  as  the 
individual  makes  good,  a  chance  for  advance- 
ment and  a  professional  reputation  and  a  chance 
to  achieve  things  by  familiar,  straightforward, 
unencumbered  business  methods. 

"Today  the  winning  principle  is  to  simplify 
and  clarify  the  processes  of  government,  so  that 
everybody  can  well  understand  and  take  part 
effectively  without  special  attention  or  effort. 
Politics  under  the  new  form  of  government  are 
primitively  bare  and  simple,  so  that  there  is 
nothing   for    the    politicians    to    specialize    in. 


Municipal  Government  317 

Every  citizen  can  and  will  pick  out  his  own 
favorite  five  candidates  without  referring  to 
party  label  or  ticket,  or  without  getting  some 
interested  person  to  guide  his  hand  for  him.  The 
candidate  has  no  one  to  look  forward  to  only 
the  voters.  The  old  intermediary  machine, 
which  has  its  ready-made  tickets,  will  have  no 
function.  The  non-political  ordinary  business 
citizen  who  counts  for  so  little  in  old  politics 
will  find  himself  exercising  his  full  control  under 
the  new  plan. 

"The  city-manager  plan  is  the  most  successful 
form  of  government  since  the  writing  of  the 
Constitution  of  the  United  States.  It  has  been 
specifically  proven,  both  in  private  and  public 
business,  that  when  authority  is  controlled  by 
one  head  the  results  are  obtained  more  quickly. 
Some  of  you  may  state  that  the  results  obtained 
by  government  officials  are  wasteful.  I  will 
agree  that  this  statement  would  be  correct,  pro- 
vided the  officials  were  elected  on  a  partisan 
ballot.  It  is  thoroughly  understood  that  when  a 
partisan  official  assumes  office,  he  has  political 
obligations  to  fulfill  and  the  party  of  which  he 
is  a  member  will  no  doubt  receive  a  majority  of 
the  favors.  Furthermore,  when  the  office-holder 
takes  office  he  is  elected  for  a  certain  definite 
time,  and  if  he  or  she  is  not  of  an  energetic  type 
the  public  must  suffer  for  the  entire  term  on 
account  of  the  inactivity. 


318       The  Destiny  of  the  American  City 

"The  commissioners  are  elected  on  a  non- 
partisan ballot  with  the  provision  stipulating 
that  no  effort  on  the  spending  of  money  will  be 
allowed.  The  rate  of  pay  is  so  small  that  the 
individual  will  not  consider  running  for  the 
office  for  financial  gain.  I  would  suggest  that 
if  you  have  a  commission  to  elect  that  they  be 
elected  on  the  basis  of  a  minimum  salary.  After 
the  commissioners  take  office  they  appoint  a 
city-manager  to  serve  at  the  will  of  the  commis- 
sion. If  the  commission  should  so  desire,  at  the 
next  meeting  night  after  employing  the  city- 
manager,  they  can  very  well  discharge  him.  I 
consider  this  advantageous  from  the  point  of 
view  that  it  keeps  the  city-manager  on  his  toes 
and  makes  him  more  efficient.  I  will  venture  to 
state  that  99  per  cent  of  the  private  corpora- 
tions in  the  United  States  today  employ  their 
officials  in  the  same  manner,  and  were  it  proper 
and  best  to  employ  them  by  contract  for  a  cer- 
tain definite  term,  the  plan  would  have  been 
adopted  long  ago.  In  adopting  the  city-manager 
plan  you  are  placing  your  city's  business  on  a 
private  corporation  basis.  Government  owner- 
ship has  been  tried  time  and  time  again  and  as 
yet  it  has  not  proven  successful.  Why?  Be- 
cause politics  have  always  been  injected  into  it. 
The  natural  trend  of  humanity  is  in  the  line  of 
the  least  resistance,  and  if  an  individual  who 
is  not  industrious  or  competent  should  obtain  a 


Municipal  Government  319 

position  by  politics,  he  will  endeavor  to  use 
politics  to  hold  his  position.  But  if  he  is  capable 
and  industrious  and  there  are  no  political  wires 
to  pull,  he  will  produce  the  results. 

"A  campaign  was  waged  in  Sacramento,  Cali- 
fornia. The  chamber  of  commerce  in  that  city 
sent  out  letters  of  inquiry  to  private  citizens  in 
different  cities  where  city-manager  form  of  gov- 
ernment was  in  control. 

"It  was  a  significant  fact  that  in  the  letters  of 
response  there  was  a  sweeping  expression  in 
favor  of  the  city-manager  plan,  and  in  not  one 
instance  was  there  declared  that  the  plan  was  a 
failure.  On  the  contrary,  there  were  many  very 
enthusiastic  endorsements  of  the  method.  Thus 
it  was  shown  that  there  is  nothing  widely  theo- 
retical about  the  plan.  It  actually  works  and 
works  to  the  advantage  of  all  the  citizens.  This, 
after  all,  is  the  greatest  essential  of  good  gov- 
ernment. Private  corporations  cannot  be  suc- 
cessful unless  the  majority  of  voting  stock- 
holders are  loyal,  and  if  all  of  you  owned  vot- 
ing stock  in  a  private  concern,  it  would  be  your 
personal  endeavor  to  see  to  it  that  such  officials 
were  appointed  as  would  bring  prosperity  to 
your  company.  The  same  condition  prevails 
with  the  cities.  Every  voter  is  a  stockholder  in 
the  municipality,  and  it  is  to  his  or  her  interest 
to  see  to  it  that  officials  are  elected  who  will  be 
a  benefit  to  the  city.    If  you  purchase  a  property 


320       The  Destiny  of  the  American  City 

in  the  city  in  which  you  live,  you  are  increasing 
your  obligation  to  that  municipality  and  it  is 
therefore  to  your  interest  to  help  make  the  city 
beautiful  and  to  give  help  to  every  civic  move- 
ment. In  my  opinion  there  are  just  three  ways 
to  eliminate  the  wasteful  and  inefficient  methods 
of  municipalities :  Elect  your  officials  on  a  non- 
partisan ballot  and  minimum  salary  wage,  and 
your  appointive  offices  for  no  definite  term. 

"At  a  recent  meeting  which  was  held  in 
Columbus,  Ohio,  by  the  members  of  the  Ohio 
State  Tax  Commission,  I  was  very  much  sur- 
prised to  learn  that  they  were  well  aware  of  the 
fact  that  Springfield  was  in  better  financial  con- 
dition than  any  city  in  the  State  of  Ohio.  Why? 
Because  we  have  had  the  city-manager  form  of 
government  since  1914  and  as  yet  the  people  are 
not  dissatisfied.  Springfield  is  a  city  of  61,000 
people  and  we  only  have  a  tax  rate  of  $17.60 
per  thousand. 

"The  majority  of  citizens  are  not  familiar 
with  the  inner  workings  of  their  municipality 
because  as  a  rule  their  time  is  so  employed  with 
other  affairs  that  they  are  not  in  position  to 
make  an  investigation.  It  is  remarkable,  to  one 
who  has  not  been  a  resident  of  the  city  of 
Springfield  for  a  number  of  years,  to  note  the 
advancement  which  has  been  made,  as  it  is  very 
apparent.  Also  it  is  realized  that  almost  one- 
half  of  the  value  of  all  improvements  that  have 


Municipal  Government  321 

taken  place  during  the  history  of  Springfield 
(or  since  it  became  a  corporation  in  1850) ,  have 
been  made  during  the  last  eight  (8)  years,  or 
under  the  city -manager  form  of  government.  I 
will  endeavor  to  give  a  few  of  the  most  impor- 
tant improvements  that  have  been  made  since 
the  commission-manager  form  of  government 
has  been  in  effect  and  in  my  opinion  one  can 
well  see  the  advantages  of  the  new  government. 

"The  commission  ordered  and  the  public  util- 
ities removed  all  wires  and  poles  from  the 
streets  in  the  center  portion  of  the  city,  facilitat- 
ing the  handling  of  fires  and  relieving  conges- 
tion in  the  down  town  district. 

"Six  and  one-half  miles  of  single  track  of 
street  railway  extensions  have  been  made. 

"Two  additional  parks  or  twenty-five  acres  of 
land  have  been  turned  over  to  the  city  for  park 
purposes. 

"Extensive  improvements  have  been  made  in 
the  water  works  department.  Our  water  rates 
compare  favorably  with  the  water  rates  along 
the  lake  front  where  it  is  cheap.  During  the 
year  of  1920  we  paid  $6.00  per  lineal  foot  or 
$25,800  for  6,000  lineal  feet  of  pipe  to  be  laid. 

"An  extensive  lighting  system  has  been  in- 
stalled and  is  composed  of  340  cluster  lights 
which  has  been  commented  upon  as  being  one 
of  the  most  beautifying  elements  in  the  city  of 
Springfield,  Ohio.    It  might  be  well  to  state  that 

21 


322       The  Destiny  of  the  American  City 

in  1913,  under  the  mayor  and  council  plan,  the 
city  had  566  electric  arc  lights  and  950  gas  lights 
for  which  the  city  paid  $54,003,  and  in  1920  the 
city  had  340  cluster  lights,  683  electric  lights  and 
998  gas  lights  for  which  they  paid  $54,211.  It 
can  be  readily  seen  that  the  city  is  receiving 
more  artificial  light  than  in  1914,  with  a  reduc- 
tion in  rates  which  was  no  doubt  brought  about 
by  the  influence  of  the  commission. 

"Twenty-seven  miles  of  cement  sidewalks  and 
seventeen  miles  of  cement  curb  and  gutter  have 
been  laid  at  a  cost  of  $181,000,  or  30  per  cent  or 
three-tenths  of  the  total  value  of  cement  side- 
walks, curb  and  gutter  ever  laid  during  the 
history  of  Springfield.  Thirty-seven  miles  of 
sewers  have  been  constructed  at  a  cost  of  $530,- 
000,  or  40  per  cent  or  two-fifths  of  the  total 
value  of  all  sewers  ever  constructed  in  the  city 
of  Springfield,  Ohio. 

"Twenty-two  and  one-half  miles  of  streets  or 
484,000  square  yards  of  paving  have  been  placed 
at  a  cost  of  $1,200,000,  or  60  per  cent,  or  three- 
fifths  of  the  total  value  of  all  paving  ever  placed 
in  the  city  of  Springfield. 

"The  unencumbered  balance  of  the  city  in 
1913  under  the  mayor  and  council  was  $664,000 
and  today  the  unencumbered  is  $1,264,000,  or 
approximately  100  per  cent  or  double  that  of 
1913.  The  valuation  of  the  city  in  1914  was  $58,- 
000,000.     In  1921  it  was  $92,000,000,  or  62  per 


Municipal  Government  323 

cent  increase.  The  tax  rate  granted  the  city  by 
the  budget  commission  for  all  city  purposes  in 
1914  was  $6.30  per  $1,000,  which  netted  the  city 
$365,000. 

"In  1921  the  tax  rate,  as  granted  the  city  for 
all  purposes,  was  $4.30  per  $1,000,  which  nets 
the  city  $400,000,  an  increase  of  9  per  cent.  We 
received  from  taxes  per  capita  in  1914,  $7.30; 
in  1921  we  would  have  received  (if  it  had  not 
been  for  the  additional  two  mill  levy)  $6.56  per 
capita,  or  0.74  per  capita  less  than  was  received 
in  1914.  We  should  bear  in  mind  that  the  popu- 
lation of  Springfield  in  1914  was  50,000  and  in 
1921,  61,000. 

"The  city  commission,  in  taking  over  the  gov- 
ernment from  the  mayor  and  council  plan,  took 
with  it  a  debt  of  $1,500.  Since  that  time  the  city 
commission  has  issued  city  share  bonds  to  the 
extent  of  almost  $1,000,000,  making  a  total  debt 
of  $2,500,000,  and  yet  today  the  city  only  owes 
$1,680,000,  or  $180,000  more  than  it  did  when 
the  new  government  went  into  effect  in  1914. 
Since  1914  the  city  has  paid  interest  on  the 
$1,500,000  of  about  $600,000;  deducting  the  $180,- 
000  from  the  $600,000  we  have  left  $420,000.  If 
the  city  commission  had  gone  into  power  with  a 
clean  slate  or  no  debt  they  would  have  in  the 
treasury  to  the  credit  of  the  city  $420,000  sur- 
plus. The  city  has  operated  on  a  cash  basis 
during  the  last  eight  (8)  years.    The  commis- 


324       The  Destiny  of  the  American  City 

sion  has  always  endeavored  to  issue  ten-year 
serial  bonds  or  short  time  bonds,  and  one  can 
well  see  that  this  government  is  not  making 
debts  for  the  future  generation  to  pay. 

"There  is  no  comparison  between  the  mayor 
and  council  plan  and  the  city-manager  plan. 
There  is  nothing  theoretical  about  this  new 
form  of  government." 

Mr.  C.  W.  Koiner,  city-manager,  Pasadena, 
California,  under  date  of  January  25,  1922, 
writes  as  follows: 

"We  take  the  position  that  the  city-manager 
form  is  superior  to  any  other  form  of  municipal 
government — the  proof  of  the  pudding  is  in  the 
eating  and  not  in  the  promise  of  the  cook.  The 
fact  that  the  city-manager  form  has  grown  since 
1908  until  there  are  about  four  million  people 
under  its  form  of  government — (there  being  two 
hundred  and  fifty  odd  cities  under  the  manager 
form,  none  having  gone  back  since  their  charter 
provided  for  this  form  of  government,  that  is  to 
the  knowledge  of  the  writer),  and  the  fact  that 
more  cities  adopted  the  plan  where  it  is  best 
known  should  be  proof  that  it  is  much  more 
effective  than  the  old  method.  The  reasons  for 
its  effectiveness  is  that  it  is  a  one-head  govern- 
ment rather  than  a  five-head.  Under  the  com- 
mission plan,  or  any  other  plan  where  the 
authority  is  distributed  to  various  heads,  there 
is  conflict.    The  best  form  of  management  has 


Municipal  Government  325 

been  demonstrated  in  private  practice  by  the 
modern  operation  so  far  as  efficient  manage- 
ment is  concerned.  This  principle  should  be 
combined  in  municipal  management,  so  far  as 
it  can  be,  with  that  of  the  consolidation  and 
handling  of  the  city's  social  problems.  It  helps 
to  eliminate  so-called  red  tape,  enabling  results 
to  be  obtained  as  contrasted  with  delay  under 
other  forms  of  municipal  government.  Of  the 
larger  and  best  forms  in  city-manager  plan,  the 
people  elect  their  council  or  board  of  directors 
and  the  city-manager  then  makes  all  appoint- 
ments of  heads  of  departments,  and  has  entire 
control  and  management  of  the  city's  affairs 
and  the  enforcement  of  the  ordinances  govern- 
ing the  city.  We  find  that  full  authority  should 
be  given  the  manager  for  the  most  effective 
work. 

"Pasadena  has  always  been  well  governed, 
both  under  the  council  and  under  the  commis- 
sion form,  but  since  the  city-manager  plan  has 
been  instituted  it  is  apparent  under  the  new 
plan  that  certain  work  can  be  done  more  effec- 
tively. 

"Of  course  under  any  plan  if  you  do  not  have 
a  good  council  or  good  directors  the  municipal 
administration  will  not  be  carried  on  as  well  as 
where  the  city  has  the  right  kind  of  officials  in 
office,  but  even  with  competent  councilmen 
under  the  manager  form  the  people  are  enabled 


326        The  Destiny  of  the  American  City 

to  know  who  to  blame  and  where  to  put  the 
blame." 

J.  B.  Ferber,  city-manager  of  Elizabeth  City, 
North  Carolina,  writes,  under  date  of  January 
21,  1922,  the  following: 

"Replying  to  your  letter  of  January  16th,  I 
wish  to  advise  that  I  have  only  been  city-man- 
ager since  June,  1921,  but  I  feel  that  it  is  much 
better  than  the  commission  form,  as  the  city- 
manager  can  act  without  having  to  wait  for  the 
commissioners  to  meet  and  give  orders  as  to 
what  this  and  that  one  wants  and  those  that  they 
represent. 

"If  your  city-manager  is  a  fair  man,  he  will 
do  the  work  where  it  is  most  needed  and  look 
after  the  expenses  and  see  that  the  work  is  done 
as  economically  as  he  would  his  own  business. 
All  that  is  purchased  for  your  town  will  come 
under  the  city-manager,  and  I  would  say,  do  not 
have  too  many  committees  to  handicap  him.  If 
he  has  to  consult  all  the  board,  he  will  not  be  as 
efficient  as  he  otherwise  would  be.  I  think  it 
well  to  have  two  as  a  committee  for  him  to  con- 
sult when  there  is  much  at  stake  and  that  the 
two  should  be  of  the  best  business  men  that 
you  have  on  your  board." 

From  the  City  of  Houston,  Texas,  we  received 
the  following: 

"Your  letter  of  January  16th  in  regard  to 
Houston's   form   of   government  has   been   re- 


Municipal  Government  327 

ceived  and  wish  to  state  that  the  commission 
form  of  government,  as  in  effect  in  this  city,  is 
a  great  success. 

"Houston  adopted  the  commission  form  of 
government  in  1904  by  a  vote  of  the  electorate. 
Prior  to  that  time  the  government  was  operated 
under  the  aldermanic  form.  There  is  really  no 
comparison  between  the  commission  form  of 
government  and  the  old  system,  and  the  results 
speak  for  themselves. 

"The  government  of  Houston  is  as  follows: 
The  mayor,  who  is  executive  head  of  the  munic- 
ipality and  also  police  commissioner  and  the  fol- 
lowing four  commissioners :  first  commissioner, 
land  and  tax  commissioner,  street  and  bridge 
commissioner  and  water  commissioner,  all 
elected  by  the  people  for  a  term  of  two  years 
and  all  serve  the  entire  city  instead  of  any  par- 
ticular portion. 

"The  commissioners  form  what  is  known  as 
the  city  council,  and  are  the  legislative  body  of 
the  city.  All  municipal  department  heads  are 
appointed  by  the  mayor  and  council,  except  the 
controller,  who  occupies  an  elective  position. 
Department  chief  clerks  are  selected  by  the 
various  department  heads;  all  other  employes, 
except  those  of  the  day  labor  service,  are  se- 
lected by  the  civil  service. 

"The  position  of  city-manager  has  recently 
been  created  and  the  creation  of  this  office  is 


328      The  Destiny  of  the  American  City 

another  step  in  the  march  of  municipal  prog- 
ress. The  city-manager  is  the  executive  assis- 
tant to  the  mayor  and  is  the  actual  business 
head  of  the  city  government.  He  reports  direct 
to  the  mayor  and  council. 

"The  mayor  and  commissioners  are  in  active 
session  from  day  to  day,  each  devoting  his  en- 
tire time  to  the  city's  welfare.  They  are  easily 
accessible  during  all  business  hours,  and  by 
one  citizen  as  easily  as  another.  Public  council 
meetings  are  held  regularly.  The  old  form  of 
government  under  which  Houston  was  operated 
might  be  termed  the  political  system,  including 
the  iniquitous  phrase,  'The  spoils  system.'  The 
present  commission  form  of  government,  with 
a  modern  civil  service  in  operation  and  a  city 
business  manager,  devoting  his  trained  energies 
and  applying  business  methods  at  every  angle 
to  the  organization,  means  that  Houston  has 
joined  the  great  progressive  cities  of  the  nation 
and  is  rendering  to  her  citizens  a  high  class, 
efficient  administration  of  their  affairs  and  is 
serving  them  creditably." 

Cities,  unlike  individuals,  are  not  all  alike. 
A  dietary  prescribed  for  one  may  not  be  alto- 
gether suitable  for  the  other,  although  a  slight 
modification  may  be  all  that  is  required. 

While  it  may  not  be  possible  to  evolve  for  the 
American  city  of  the  future  a  certain  prescribed 
form  of  municipal  government  suitable  for  one 


Municipal  Government  329 

and  all  alike,  it  is  reasonable  to  expect  that  all 
three  forms  may  be  used  effectively  with  such 
modification  of  each  that  were  best  adapted  to 
the  various  conditions  presented. 

Surely  the  progress  being  made  with  the 
newer  forms  of  government  can  not  help  hav- 
ing a  stimulating  and  beneficial  influence  over 
the  old,  so  as  to  relieve  it  of  many  of  its  present 
objectionable  features. 


XXIII 

BUREAU  OF  MUNICIPAL 
RESEARCH 


Municipal  waste,  through  the  masterly 
inactivity  of  public  officials  and  through  the 
failure  of  different  departments  to  work  in 
harmony,  has  become  proverbial.  Yet  it  may 
be  debated  whether  public  authority  has 
displayed  these  shortcomings  in  a  degree 
relatively  greater  than  that  shown  by  civic 
welfare  organizations  as  a  whole.  The 
overlapping  effect  among  these  latter  is  so 
notorious  as  to  warrant  the  suggestion  that 
the  professed  friends  of  municipal  reform 
should  begin  by  setting  their  own  house  in 
order. 

— Munro. 


BUREAU  OF  MUNICIPAL 
RESEARCH 

"Worth  while  improvements  come  slowly.  The 
habit  of  haste  without  knowledge  is  expensive." 

Every  American  city  should  establish  for 
itself  a  Bureau  of  Municipal  Research  in  a  na- 
ture of  an  independent  citizens'  organization  of 
constructive  criticism  and  co-operation  to  stim- 
ulate citizen  interest  and  thereby  advancing  ad- 
ministrative efficiency  similar  to  the  Toronto 
plan  with  such  modification  as  will  best  meet 
conditions  here.  The  fundamental  basis  of  such 
a  bureau  to  be,  first,  ascertaining  the  facts 
through  careful  research,  second,  analyzing  and 
interpreting  the  facts,  third,  publishing  the  facts 
with  constructive  suggestions  based  thereon. 

One  of  the  greatest  drawbacks  to  municipal 
development  is  the  fact  that  the  average  citizen 
takes  no  interest  and  very  little  or  no  active 
part  in  administrative  affairs  of  the  city. 

True,  something  may  occur  in  municipal  af- 
fairs to  arouse  his  indignation,  which  he  thinks 
should  be  corrected,  but  which  he  concludes, 
upon  reflection,  too  great  for  individual  effort. 
Overcome  with    the  sense   of  helplessness   his 

333 


334       The  Destiny  of  the  American  City 

mind  soon  drifts  away  from  thoughts  of  public 
welfare  to  matters  of  more  personal  interest. 

This  feeling  of  helplessness,  on  the  part  of  the 
individual,  would  soon  be  dispelled,  if  it  were 
possible  to  place  his  suggestions  before  a  re- 
sponsible independent  organization,  that  would 
ascertain,  weigh  and  carefully  analyze  the  facts. 

The  benefits  of  such  an  organization  would 
immediately  raise  the  standard  of  efficiency  on 
the  part  of  the  individual  as  a  factor  in  munici- 
pal betterment.  This  organization  to  be  founded 
in  the  belief  that  the  securing  of  effective  gov- 
ernment depended  on  the  building  up  of  a  large 
body  of  informed  citizens  and  to  recognize, 
from  the  start,  that  the  problem  is  an  educa- 
tional one,  and  in  its  solution,  requiring  not 
only  days  and  months,  but  years  and  decades, 
and  the  failure  on  the  part  of  so  called  reforms 
are  frequently  due  to  their  impatience  with 
slow  thorough  going  methods  and  their  resorts 
to  short  cuts,  which  lead  to  spectacular  results 
in  a  period  of  inflamed  public  opinion,  but  se- 
cure little  or  no  permanent  advantage,  fre- 
quently leading  the  citizens  in  a  more  apathetic 
and  depressing  condition  than  they  were  before. 

The  bureau  is  to  consist  of  a  voluntary  asso- 
ciation of  citizens  whose  chief  aim  is  to  serve  all 
the  citizens,  to  promote  informed  citizenship, 
and  through  this,  to  establish  desirable  condi- 
tions of  community  life  by  co-operating  with 


Bureau  of  Municipal  Research  335 

other  citizen  organizations  in  promoting  the 
city's  interest. 

To  assist  in  formulating  a  systematic  program 
of  conscientious  endeavor  in  municipal  affairs. 
Separating  the  good  from  the  bad,  crystallizing 
public  sentiment  into  united  action  to  become  a 
standard  or  yard  stick  by  which  all  proposed 
activities  may  be  carefully  weighed  and  meas- 
ured in  advance. 

For  the  administrative  forces,  conscientiously 
endeavoring  to  do  the  duty  assigned,  a  Bureau 
of  Municipal  Research  would  have  its  benefits. 

Its  stimulating  influence  would  not  only  tend 
to  force  it  up  to  the  highest  point  of  efficiency, 
but  would  also  be  a  source  of  satisfaction  in  car- 
rying out  an  administrative  policy,  feeling  that 
the  issues  had  been  properly  weighed  and 
analyzed  in  advance,  enabling  them  to  act  upon 
the  consensus  of  opinion  of  the  whole,  rather 
than  upon  the  opinion  of  any  portion  or  frac- 
tion thereof. 

Upon  the  collection  of  facts  and  proper  analy- 
sis of  same  to  publish  the  findings  with  such 
suggestions  and  recommendations  as  it  may  be 
disposed  to  make  in  the  interest  of  the  city  and 
to  bring  results,  pressed  through  continuous 
publicity. 

As  a  means  to  its  main  end  of  stimulating 
public  discussion  of  municipal  issues,  to  pub- 
lish, in  bulletin  form,  covered  periodically, 
every  phase  of  the  city's  business. 


336      The  Destiny  of  the  American  City 

To  issue  to  the  city  council,  and  various  civic 
boards,  open  letters  on  matters  of  great  public 
importance,  the  bureau  to  make  no  criticisms 
without  offering,  at  the  same  time,  a  construc- 
tive suggestion. 

It  should  refuse  co-operation  with  no  persons, 
organization  or  department,  when  such  co-oper- 
ation has,  for  its  aim,  increasing  efficiency  of 
community  undertakings,  and  when  the  bureau 
has  the  necessary  facilities  for  doing  effective 
work.  The  following  are  a  few  of  the  phases  of 
community  life  that  may  now  be  properly 
studied  and  analyzed  by  a  Bureau  of  Municipal 
Research,  reporting  the  facts  in  the  open  forum 
with  such  recommendations  for  adoption  as  it 
may  have  to  offer: 

Studies  in  municipal  government. 

Spending  other  people's  money,  wisely. 

Encouraging  public  improvements  by  adopt- 
ing economic  business  methods  and  cost  of  con- 
struction. 

How  cost  of  public  improvements  may  be  re- 
duced. 

The  necessity  of  consistent  fight  for  retrench- 
ment and  increased  efficiency  during  the  present 
critical  period  of  deflation. 

Increased  efforts  on  the  part  of  the  munici- 
pality, to  effect  economies  during  periods  of 
inevitable  expenditure,  the  aftermath  of  war. 

Taxation,  how  reduced. 


Bureau  of  Municipal  Research  337 

Housing. 

The  city  budget. 

City  parks. 

City  auditing. 

Community  service  and  philanthropy. 

Surveys  of  city  schools,  reports  and  recom- 
mendations. 

The  personnel  of  municipal  government. 

Zoning  and  city  planning. 

Public  utilities. 

Organization  of  civic  welfare  work. 

Wise  municipal  financial  policy. 

Maximum  public  improvements  at  minimum 
cost. 

The  lack  of  information  and  proper  publicity 
from  authoritative  and  unprejudiced  sources 
oftentimes  fills  the  electorate  with  a  feeling  of 
doubt  and  uncertainty. 

Issues  properly  considered,  analyzed  and 
weighed  with  constructive  criticism  and  action 
after  the  facts,  rather  than  criticism  and  inac- 
tion before  the  facts,  should  be  the  slogan. 

It  must  be  understood  that  improving  the  city 
improves  the  state  and  nation.  To  work  from 
within,  gradually  expanding  into  a  broader  and 
more  intelligent  citizenship,  would  be  the  result 
of  a  Bureau  of  Municipal  Research  and  thereby 
a  most  essential  and  most  important  factor  in 
working  out  the  destiny  of  the  American  city. 


ADDENDA 


ADDENDA 

New  York  Law — Tax-Exemptions  —  Dwellings 

An  Act  to  amend  the  tax  law,  in  relation  to 
extending  the  time  for  commencement  of  con- 
struction for  the  purpose  of  securing  exemp- 
tions from  local  taxations  of  buildings  planned 
for  dwelling  purposes,  became  a  law  March 
27,  1922. 

Section  1.  Section  four-b  of  chapter  sixty- 
two  of  the  laws  of  nineteen  hundred  and  nine, 
entitled  "An  act  in  relation  to  taxation,  consti- 
tuting chapter  sixty  of  the  consolidated  laws," 
as  added  by  chapter  nine  hundred  and  forty- 
nine  of  the  laws  of  nineteen  hundred  and  twenty 
and  amended  by  chapter  four  hundred  and 
forty-four  of  the  laws  of  nineteen  hundred  and 
twenty-one,  is  hereby  amended  to  read  as  fol- 
lows: 

4-b.  Exemption  of  new  buildings  from  local 
taxation.  The  legislative  body  of  a  county,  or 
the  legislative  body  of  a  city  with  the  approval 
of  the  board  of  estimate  and  apportionment,  if 
there  be  one  in  such  city,  or  the  governing  board 
of  a  town,  village  or  school  district  may  deter- 
mine that  until  January  first,  nineteen  hundred 
and  thirty-two,  new  buildings  therein,  planned 

341 


342       The  Destiny  of  the  American  City 

for  dwelling  purposes  exclusively,  except  hotels, 
shall  be  exempt  from  taxation  for  local  pur- 
poses other  than  for  assessments  for  local  im- 
provements during  construction  and  so  long  as 
used  or  intended  to  be  used  exclusively  for 
dwelling  purposes,  or  if  a  building  of  four  sto- 
ries or  more  in  height,  used  exclusively  for 
dwelling  purposes  above  the  ground  floor,  pro- 
vided construction  was  completed  since  April 
first,  nineteen  hundred  and  twenty,  or,  if  not  so 
completed,  that  construction  be  commenced  be- 
fore April  first,  nineteen  hundred  and  twenty- 
three,  and  completion  for  occupancy  be  effected 
within  two  years  after  such  commencement,  or 
if  in  course  of  construction  on  September  twen- 
ty-seventh, nineteen  hundred  and  twenty,  within 
two  years  thereafter.  The  provisions  of  this 
section  shall  not  be  construed  to  preclude  such 
legislative  bodies  from  granting  exemptions 
which  do  not  exceed  the  exemption  authorized 
by  this  section.  Any  such  limited  exemption 
heretofore  granted  by  any  such  legislative  body, 
intending  or  purporting  to  act  under  the  au- 
thority conferred  by  this  section,  is  hereby  le- 
galized, validated  and  confirmed.  For  the  pur- 
poses of  this  section,  construction  shall  be 
deemed  commenced  when  the  plans  have  been 
filed  with  the  proper  authorities  and  excava- 
owner  or  architect  may  file  with  the  authority 
tion  actually  and  in  good  faith  begun.     The 


Addenda  343 

with  whom  the  plans  are  filed  a  statement  in 
writing  setting  forth  the  date  of  filing  plans  and 
the  date  when  excavation  was  actually  com- 
menced; and  said  authority  shall  forthwith 
cause  said  facts  to  be  investigated.  If  said  state- 
ment on  such  investigation  is  found  to  be  true, 
said  authority  shall  thereupon  issue  to  such 
owner  or  architect  a  certificate  setting  forth  the 
date  when  the  plans  were  filed  with  him,  and 
the  date  when  excavation  was  actually  com- 
menced, which  certificate  shall  be  conclusive 
evidence  of  the  date  when  construction  was 
commenced,  for  the  purpose  of  obtaining  the 
benefits  of  this  section. 

Illinois  Zoning  Law 

An  Act  to  confer  certain  additional  powers 
upon  city  councils  in  cities  and  presidents  and 
boards  of  trustees  in  villages  and  incorporated 
towns  concerning  buildings  and  structures,  the 
intensity  of  use  of  lot  areas,  the  classification 
of  trades,  industries,  buildings,  and  structures, 
with  respect  to  the  location  and  regulation,  the 
creation  of  districts  of  different  classes  and  the 
establishment  of  regulations  and  restrictions 
applicable  thereto. 

Section  1.  Be  it  enacted  by  the  People  of  the 
State  of  Illinois,  represented  in  the  General  As- 
sembly; In  addition  to  existing  powers,  and  to 
the  end  that  adequate  light,  pure  air  and  safety 


344      The  Destiny  of  the  American  City 

from  fire  and  other  dangers  may  be  secured, 
that  the  taxable  value  of  land  and  buildings 
throughout  the  city,  village  or  incorporated 
town,  may  be  conserved,  that  congestion  in  the 
public  streets  may  be  lessened  or  avoided,  and 
that  the  public  health,  safety,  comfort,  morals 
and  welfare  may  otherwise  be  promoted,  the 
city  council  in  each  city,  and  the  president  and 
board  of  trustees  in  each  village  and  incorpo- 
rated town  shall  have  the  following  powers : 

To  regulate  and  limit  the  height  and  bulk  of 
buildings  hereafter  to  be  erected;  to  regulate 
and  limit  the  intensity  of  the  use  of  lot  areas, 
and  to  regulate  and  determine  the  area  of  open 
spaces,  within  and  surrounding  such  buildings; 
to  classify,  regulate  and  restrict  the  location  of 
trades  and  industries  and  the  location  of  build- 
ings designed  for  specified  industrial  business, 
residential  and  other  uses;  to  divide  the  entire 
city,  village  or  incorporated  town  into  districts 
of  such  number,  shape,  area  and  of  such  differ- 
ent classes  (according  to  use  of  land  and  build- 
ings, height  and  bulk  of  buildings,  intensity  of 
the  use  of  lot  areas,  area  of  open  spaces,  or 
other  classification)  as  may  be  deemed  best 
suited  to  carry  out  the  purposes  of  this  Act;  to 
fix  standards  to  which  buildings  or  structures 
shall  conform  therein;  to  prohibit  uses,  build- 
ings or  structures  incompatible  with  the  charac- 
ter of  such  districts  respectively;     and  to  pre- 


Addenda  345 

vent  additions  to  and  alteration  or  remodeling 
of  existing  buildings  or  structures  in  such  a  way 
as  to  avoid  the  restrictions  and  limitations  law- 
fully imposed  hereunder.  In  all  ordinances 
passed  under  the  authority  of  this  Act,  due  al- 
lowance shall  be  made  for  existing  conditions, 
the  conservation  of  property  values,  the  direc- 
tion of  building  development  to  the  best  advan- 
tage of  the  entire  city,  village  or  incorporated 
town,  and  the  uses  to  which  property  is  devoted 
at  the  time  of  the  enactment  of  any  such  ordi- 
nance. The  powers  by  this  Act  given  shall  not 
be  exercised  so  as  to  deprive  the  owner  of  any 
existing  property  of  its  use  or  maintenance  for 
the  purpose  to  which  it  is  then  lawfully  devoted. 
Sec.  2.  The  city  council  in  cities  and  the 
president  and  board  of  trustees  in  villages  and 
incorporated  towns,  which  desire  to  exercise 
the  powers  conferred  by  this  Act,  shall  provide 
for  a  zoning  commission  whose  duty  it  shall  be 
to  recommend  the  boundaries  of  districts  and 
appropriate  regulations  to  be  enforced  therein, 
such  commission  to  be  appointed  by  the  mayor 
or  president  of  the  board  of  trustees,  subject  to 
confirmation  by  the  council  or  board  of  trustees. 
Such  commission  shall  prepare  a  tentative  re- 
port and  a  proposed  zoning  ordinance  for  the 
entire  city,  village  or  incorporated  town.  After 
the  preparation  of  such  tentative  report  and  or- 
dinance, the  commission  shall  hold  a  hearing 


346      The  Destiny  of  the  American  City 

thereon  and  shall  afford  persons  interested  an 
opportunity  to  be  heard.  Notice  of  such  hear- 
ing shall  be  published  at  least  15  days  in  ad- 
vance thereof  in  four  conspicuous  places  within 
the  city,  village  or  incorporated  town.  Such  no- 
tice shall  state  the  time  and  place  of  the  hear- 
ing and  the  place  where  copies  of  the  proposed 
ordinance  will  be  accessible  for  examination  by 
interested  parties.  Such  hearing  may  be  ad- 
journed from  time  to  time. 

Within  thirty  days  after  the  final  adjourn- 
ment of  such  hearing  the  commission  shall 
make  a  final  report  and  submit  a  proposed  or- 
dinance for  the  entire  city,  village  or  incorpo- 
rated town  to  the  city  council  or  board  of  trus- 
tees, as  the  case  may  be.  The  city  council  or 
board  of  trustees  may  enact  the  ordinance  with 
or  without  change,  or  may  refer  it  back  to  the 
commission  for  further  consideration.  The  zon- 
ing commission  shall  cease  to  exist  upon  the 
adoption  of  a  zoning  ordinance  for  the  entire 
city,  village  or  incorporated  town. 

Sec.  3.  All  ordinances  passed  under  the 
terms  of  this  Act  shall  be  enforced  by  such  offi- 
cer of  the  city,  village  or  incorporated  town  as 
may  be  designated  by  ordinance.  Each  city,  vil- 
lage or  incorporated  town  exercising  the  powers 
conferred  by  this  Act  shall  provide  by  ordinance 
for  the  creation  of  a  board  of  appeals  of  not  less 
than  three  members  nor  more  than  five  mem- 


Addenda  347 

bers  to  be  appointed  in  the  same  manner  as  the 
zoning  commission.  Such  board  of  appeals 
shall  have  power:  (a)  Upon  application  to  re- 
view the  actions  of  the  enforcing  officer  of  the 
city,  village  or  incorporated  town  in  order  to 
determine  whether  they  are  in  accordance  with 
the  terms  of  ordinances  enacted  under  the 
terms  of  this  Act;  (b)  to  recommend  to  the  city 
council  or  board  of  trustees  such  ordinances  or 
amendments  as  it  may  deem  necessary  or  desir- 
able, including  power  in  specific  cases  of  partic- 
ular hardship  to  recommend  variations  of  the 
original  ordinance  or  amendments  thereto.  Va- 
riations from  or  amendments  to  ordinances  en- 
acted under  the  terms  of  this  Act  shall  in  all 
cases  be  made  by  ordinance. 

Sec.  4.  The  regulations  imposed  and  the 
districts  created  under  the  authority  of  this  Act 
may  be  varied  or  amended  from  time  to  time  by 
ordinance  after  the  ordinance  establishing  same 
has  gone  into  effect,  but  no  such  variations  or 
amendments  shall  be  made  without  a  hearing 
before  the  board  of  appeals,  which  shall 
give  notice  and  proceed  in  the  same  man- 
ner as  is  provided  by  Section  2  with  respect  to 
the  zoning  commission.  Upon  its  report  the 
city  council  or  board  of  trustees  may  adopt  the 
proposed  variation  or  amendment,  with  or  with- 
out change,  or  may  refer  it  back  to  the  board 
for  further  consideration.    Any  proposed  varia- 


348      The  Destiny  of  the  American  City 

tion  or  amendment  which  fails  to  receive  the 
approval  of  the  board  of  appeals  shall  not  be 
passed  except  by  the  favorable  vote  of  two- 
thirds  of  all  the  members  of  the  city  council  in 
cities  or  of  the  members  of  the  board  of  trus- 
tees in  villages  or  incorporated  towns.  In  case 
of  written  protest  against  any  proposed  varia- 
tion or  amendment,  signed  by  the  owners  of  20 
per  cent  of  the  frontage  immediately  adjoining 
or  across  an  alley  therefrom,  or  by  the  owners 
of  20  per  cent  of  the  frontage  directly  opposite 
the  frontage,  proposed  to  be  altered  as  to  such 
regulations  or  district,  filed  with  the  said  board 
of  appeals,  or  with  the  city  council  or  board  of 
trustees,  such  variation  or  amendment  shall  not 
be  passed  except  by  the  favorable  vote  of  two- 
thirds  of  all  of  the  members  of  the  city  council 
in  cities  or  of  the  members  of  the  board  of  trus- 
tees in  villages  or  incorporated  towns. 

Sec.  5.  "An  Act  to  confer  certain  addi- 
tional powers  upon  city  councils  in  cities  and 
presidents  and  boards  of  trustees  in  villages 
concerning  buildings,  the  intensity  of  use  of  lot 
areas,  the  classification  of  buildings,  trades  and 
industries  with  respect  to  location  and  regula- 
tion, the  creation  of  residential,  industrial, 
commercial  and  other  districts,  and  the 
exclusion  from  and  regulation  within  such 
districts  of  classes  of  buildings,  trades  and  in- 
dustries," approved  June  28,  1919,  in  force  July, 


Addenda  349 

1919,  is  repealed.  This  repeal  shall  in  no  way 
affect  the  validity  of  steps  taken  or  acts  done  un- 
der the  Act  so  repealed.  No  acts  done  in  com- 
pliance or  supposed  or  attempted  compliance 
with  the  Act  so  repealed  shall  be  rendered  void 
or  of  no  effect  because  of  omissions,  defects  or 
irregularities,  if  such  acts  are  in  compliance 
with  the  requirements  of  this  act. 


INDEX 

PAGE 

Americanization     287 

Arbitrations  and  Legislative  Commissions ....  247 

Budget  Reform    123 

Bureau  of  Municipal  Research 333 

Bureaucracy   130 

City  and  the  Alien 283 

City  and  the  Open  Shop 219 

City  and  the  Tax  Problem 149 

City  Commission 309 

City-Manager  Plan   313 

City  Zoning    273 

Complex  Railroad  Problems 90 

Construction  Ethics    207 

Contributing  Factors    69 

Dedication 7 

Deliberate  and  Definite  Planning 57 

Destruction  vs.  Construction 263 

Dwellings    341 

Excess  Profit  Tax 150 

Federal  Aid    135 

Federal  Subsidies   79 

Final  Analysis  141 

Foreword    5 

Freight  Costs  on  Basic  Commodities 95 

Freight  Rates  and  Living  Costs 93 

Future  Builders  of  the  American  City 19 

Government  Expenditures 118 

Gradual  Recession  in  Prices 75 

Housing  Plan 223 

350 


Index  351 

PAGE 

How  Are  You  Classified? 26 

Human  Wealth   303 

Illinois  Zoning  Law   343 

Illustrated  Examples  in  City  Planning 

Immigration  and  Labor 293 

Immigration  and  Living  Costs 300 

Individualism   21 

Invisible  Taxation 494 

Labor   Radicalism 236 

Labor  Supervision 229 

Landis  Award    249 

Legislative  Commissions    254 

Legislative  Enactments    63 

Literacy  Test  285 

Living  and  Saving  Wage 234 

Maximum  Improvements  at  Minimum  Cost ...  44 

More  Business  in  Government 115 

Municipal  Government 307 

Municipal  Waste 257 

Municipality  34 

New  York  Law 341 

Official   Co-operation    51 

Over-taxation   155 

Period  for  Corrective  Measures 36 

Public  and  Private  Ownership 96 

Public  Improvements  41 

Railroad  Publicity 85 

Railroads  and  the  Farmer 102 

Reconstruction 9 

Sales  Tax   185 

School  Tax 177 

School  Tax  Laws 179 

Standardization  of  Materials 201 


352  Index 

PAGE 

Strikes   and  Lockouts. 267 

Sub-Normal  Efficiency  of  Labor 109 

Taxes  and  Rentals 166 

Tax-Exempt  Securities 164 

Tax-Exemption   on   Dwellings 341 

Tax  on  Realty 169 

Taxation  and  the  Profiteer 190 

Transportation  Problems 83 

True  Optimism   129 

What  Is  a  Public  Improvement? 42 

What  May  Be  Done 31 


HAMMOND    PRESS 
S.  OONKEY  COMPANY 
CHICAQO 


THIS  BOOK  IS  DUE  ON  THE  LAST  DATE 
STAMPED  BELOW 


AN  INITIAL  FINE  OF  25  CENTS 

WILL  BE  ASSESSED  FOR  FAILURE  TO  RETURN 
THIS  BOOK  ON  THE  DATE  DUE.  THE  PENALTY 
WILL  INCREASE  TO  SO  CENTS  ON  THE  FOURTH 
DAY  AND  TO  $1.00  ON  THE  SEVENTH  DAY 
OVERDUE. 


NOV  F)  m 


■*T-Hr- ^ 


__ _ 


FEB     71955 


ftt,R    IS  1935 


27W64PS 


.._ 


3+ 


REC'D  LP 

ft]    3 '64 -12 " 


LD21-100m-7,'33 


w 


YB  06623 


UNIVERSITY  OF  CALIFORNIA  LIBRARY 


